Annual report. Prepared by the. Directorate-General for the Regulation of Gambling

Transcription

1 Annual report 216

2 Annual report Prepared by the Directorate-General for the Regulation of Gambling

3 Edita: Ministerio de Hacienda y Función Pública Secretaría General Técnica Subdirección General de Información, Documentación y Publicaciones Centro de Publicaciones N.I.P.O.:

4 Letter from the Director-General for the Regulation of Gambling For another year, the Directorate-General for the Regulation of Gambling (DGOJ) presents its Annual report; its sixth since the start of its journey and my first as Director-General. The Report is an outstanding product and reflects the activity of the DirectorateGeneral and of the Spanish gambling market itself from various perspectives. On one hand, from an internal point of view, the knowledge of the gambling market and its characteristics, as well as the global and individual analysis of different regulated games, allows us to carry out the tasks entrusted to us as closely as possible to the reality. Through the image of the sector which the Report reflects, the DGOJ adapts its strategy and the development of its policies in a manner more proportional to the context of the market in which it finds itself; a market, by definition, in constant evolution and innovation. On the other hand, we understand that all the information contained in this Report is of extreme use for a significant number of actors, from the gamblers and consumers themselves, to gambling operators or other sectors influenced by it, and by researchers, associations or entities who focus their activity on the gambling industry. Of particular note for this Report is its impact on matters of Juan Espinosa García relevance today such as the accountability Director-General for the Regulation of Gambling and transparency and publicity of our actions, which in the last instance are principles of mandatory guidance in all the actions of public authorities. Given its importance, it would not be appropriate to continue without expressing our sincere thanks to all those involved in the preparation of this document, with

5 special emphasis on the work done by all the different participating bodies (Public Administrations, operators and institutions) in collecting and sending the requested data. It must be stressed that it is the involvement of the various agents concerned which builds and defines the usefulness of the Report. In this sense, and without prejudice to the continuity of this edition in relation to the previous ones, our ambition for future years necessarily goes through revising, adapting and completing its content, with the participation and awareness of all. Only with a desire for constant and participative improvement will the Report consolidate itself as a reference instrument within the informative and statistical panorama of the sector. Taking the data presented in the Report into consideration, 216 was confirmed as another year of growth in the regulated gambling market and its consolidation as a safe, viable and integrated environment. In numbers, we can see that its size exceeded the 8, million euros of gross gambling revenue last year, that is income less the prizes distributed, some 3.3% higher than that of the previous year. The segmentation of the gross revenue by channel between the land based and the online market is similar to that of previous years, with a split of 93.91% to 6.9%, respectively. In terms of the state online segment, the gross gambling revenue amounts to 429,274,246 euros, a remarkable 34.32% increase from the previous year. The gross gambling revenue in the online channel equalled 3.94% of the amounts gambled, compared to 215 when it was 3.73% and 3.88% in 214. Looking at specific gambling through this channel, the evolution of the revenue in all of them has been positive compared to the previous year, except in the case of online poker, which witnessed a decrease of 4.33%. Regarding the land based sector, and within the area regulated by this Directorate-General, mention should be made of the evolution of the figures of Sociedad Estatal Loterías y Apuestas del Estado S.M.E, S.A. and of the Spanish National Organisation for the Blind, with combined sales in 216 of 1,593.3 million euros and a gross gambling revenue of 4, million euros, an evolution of 1.15% above the previous year in business volume, albeit with a small decline of.44% in gambling gross gambling revenue.

6 However, as I stated, the Report is not merely a presentation of statistical data, but also a source of information for citizens of the Directorate's activity in the past year. As a result, it is not possible to overlook the particularities of the legislative breakdown resulting from the political situation, despite which, and in line with the importance and variety of public responsibilities exercised, the activity of the DGOJ has not been interrupted. Finally, I would also like to emphasise the commitment made by the Directorate over the past years in the development of a viable, integrated and innovationfriendly market, which balances its actions by minimising the risks of the sector in which we find ourselves and at the same time guaranteeing this safe entertainment activity. A commitment which will surely continue to guide our actions in the coming years. Juan Espinosa García Director-General for the Regulation of Gambling

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8 Contents THE DIRECTORATE-GENERAL FOR THE REGULATION OF GAMBLING IN The Directorate-General for the Regulation of Gambling 1.2. Gambling Licences and Authorisations of the Directorate-General for the Regulation of Gambling 1.3. Regulatory implementation GAMBLING IN SPAIN 2.1. Land Based channel 2.2. The online channel 2.3. The gambling market by segment 2.4. The gambling market by lottery operator METHODOLOGICAL NOTE AND APPENDICES 3.1. Methodological note 1.5. Disciplinary proceedings 3.2. Operators with a general licence for national online gambling forms. Year Institutional relations 3.3. Appendices 1.4. Gambling activity control 1.7. Gambling advertising: co regulation agreement. Code of conduct on gambling related commercial communication 1.8. Responsible gambling 1.9. Information, Transparency and Good Governance 216 Annual Report Page 7 of 164

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10 The Directorate-General for the Regulation of Gambling 1. THE DIRECTORATE GENERAL FOR THE REGULATION OF GAMBLING IN The Directorate-General for the Regulation of Gambling The Directorate-General for Gambling Regulation arises from the need for the Central State Administration to assume those functions and powers of gambling regulation which had been exercised by the former Public Business Entity Loterías y Apuestas del Estado. Thus, it is the responsibility of this Directorate-General to authorise, supervise, control and, where appropriate, punish, the development, exploitation and marketing of gambling and other activities provided for under Law 13/211, of 27 May, on gambling regulation, ensuring the proper functioning of state-wide gambling, in particular those marketed online. Its activity is also aimed at protecting vulnerable groups, especially minors, by developing or promoting actions and programmes to prevent gambling addiction. The functions of the Directorate-General for the Regulation of Gambling (hereinafter, DGOJ) are governed by Article 21 of Law 13/211, of 27 May (LRG), 216 Annual Report Page 9 of 164

11 The Directorate-General for the Regulation of Gambling and Article 6 of Royal Decree 256/212, of 27 January, and are exercised through the bodies with the status of Sub-Directorate-General which make it up. Directorate-General for the Regulation of Gambling Sub-Directorate-General for Institutional Management and Relations Sub-Directorate-General for Inspection Sub-Directorate-General for Regulation At the end of 216, 55 staff members, 46 officials (including the Director-General) and 9 workers were working in the DGOJ, maintaining stability in the workforce, whose average composition during 216 was as follows: 5% 45% 4% 35% 3% Average workforce structure of the DGOJ. Year % 38.6% 25% 2% 15% 1% 5% 17.54% 15.79% % Civil servants N28-3 Civil servants N22-26 Other civil servants Staff Chart 1: Average workforce structure of the DGOJ. Year Annual Report Page 1 of 164

12 Gambling Licences and Authorisations 1.2. Gambling Licences and Authorisations of the Directorate-General for the Regulation of Gambling Applications for general licences During 216, no procedure for granting general licences took place. Application for and invalidity of specific licences During 216, there were 15 applications for specific licences processed (3 which had been submitted in 215 and 12 submitted in 216), all of which were granted, following the appropriate procedures, through the corresponding resolutions of the Director-General for the Regulation of Gambling. These specific licences corresponded to the following types of gambling; slot machines (7), Roulette (3), Blackjack (2), Baccarat (1), Sport fixed-odds betting (1) and Bingo (1). During the final months of 216, a request for a specific licence for Blackjack was also submitted, for which the processing and eventual granting took place during 217. TABLE 1: GRANTING OF NEW SPECIFIC LICENCES. OPERATORS WITH GENERAL LICENCES GRANTED IN 212 AND 214 GENERAL LICENCE SPECIFIC LICENCE OTHER TYPES OF GAMBLING Slot machines 7 Blackjack 2 Bingo 1 Baccarat 1 Roulette 3 BETTING Sport fixed-odds betting 1 TOTAL 15 Source: Directorate-General for the Regulation of Gambling. 216 Annual Report Page 11 of 164

13 The Directorate-General for the Regulation of Gambling TABLE 2: LICENCES RENDERED INVALID LICENSED OPERATORS Reason for invalidity Waiver 216 A B C D GENERAL LICENCE - OTHER TYPES OF GAMBLING Specific Licence POKER 4 Specific Licence BINGO 3 Specific Licence BLACKJACK 1 Specific Licence ADDITIONAL GAMES 1 1 GENERAL LICENCE BETTING Specific Licence HORSE FIXED-ODDS BETTING 1 Specific Licence OTHER FIXED-ODDS BETTING GENERAL LICENCE CONTESTS Specific Licence Contests Source: Directorate-General for the Regulation of Gambling. A - Invalid due to lack of use of the specific licence, for at least one year (article 9.5 Law 13/211) B - Invalid due to failure to obtain final authorisation of the specific licence (article 17 RD 1614/211) C - Invalid due to non-renewal of the guarantees (article 42 RD 1614/211) D - Invalid due to expiry of a specific licence, without its renewal having been requested or granted (article 9.5 Law 13/211) Finally, at the close of 216, there were 32 specific licences in force, with a total of 315 specific licences which had been in effect at some point in the year (21.62% more than in 215), with the following distribution by form of gambling: 216 Annual Report Page 12 of 164

14 Gambling Licences and Authorisations 14 Specific licences by form of gambling CASINO BETTING SLOT MACHINES POKER BINGO CONTESTS Source: Directorate-General for the Regulation of Gambling. Licences with a term of at least 1 day in the period. Chart 2: Specific licences by form of gambling On the other hand, action has been taken in relation to occasional authorisations, referred to in the tables below: TABLE 3: AUTHORISATION OF OCCASIONAL GAMBLING ACTIVITIES Authorised Denied Withdrawn Other Source: Directorate-General for the Regulation of Gambling. 216 Annual Report Page 13 of 164

15 The Directorate-General for the Regulation of Gambling TABLE 4: AUTHORISATION OF LOTTERY GAMES ORGANIZACIÓN IMPULSORA DE DISCAPACITADOS (OID - ORGANISATION FOR THE PROMOTION OF THE DISABLED) 2 Applications for non-occasional gambling Resolution rejected in both proceedings SELAE - Request for non-occasional lottery games Report on articles 24 and 25 of RD 1614/ application presented Source: Directorate-General for the Regulation of Gambling. TABLE 5: AUTHORISATION OF TYPE B SLOT MACHINES. RO-RO PASSENGER SHIPS TYPE B Machines (Ro-ro passenger ships) Authorisation for installation on ships Authorisation due to change of location Authorisation for installation of machines Renewal of licence term Authorisation of tax exchanges TOTAL Source: Directorate-General for the Regulation of Gambling Regulatory implementation Six years after the enactment of Law 13/211, of 27 May, on gambling regulation, it is necessary to continue analysing the regulatory framework applicable to national level gambling and, if necessary, adapt gambling regulation so that it can better serve the objectives and interests of the gambling market in Spain and reconcile those needs with the essential protection of public health, minors and the prevention of addictions and fraudulent activities. Nevertheless, and as has already been shown at the beginning of this Report, 216 has been characterised primarily by a legislative breakdown and government action which has not made it possible to develop regulatory initiatives. In any case, it has not been an impediment to the 216 Annual Report Page 14 of 164

16 Regulatory changes continuous updating and revision of the sector by the DGOJ which will allow for future reforms with a greater degree of approach to the reality. In this regard, after the work carried out during 215 on the preparation of the draft Royal Decree on marketing communications of gambling activities and responsible gambling, with the aim of developing the provisions of the Law on gambling regulation in these areas, a new gambling scenario has been analysed; that of international fluidity, widely demanded by gambling operators and users, as more than six years after the effective implementation of the regulated market in our country, it cannot be considered that the economic viability of certain games have been strengthened since its entry into force, nor that such viability is guaranteed in the medium and long term. The general interests preserved by Law 13/211 rely on, among other things, the correct functioning of the regulated gambling market, in terms of economic rationality, viability and adequate tax return as a consequence of the activity carried out by the operators. In view of this, it is expected that in a short period of time the fluidity of certain games developed in Spain will no longer be limited to the participation of Spanish user registration. With regard to the former, it has been considered that, from the regulatory point of view of gambling activity, bets on them are perfectly regulated without the need for any adaptation. Conversely and, in relation to the latter, the study and analysis of gambling is being evaluated by a possible regulation of this gambling activity in order to allow its marketing, provided that the basic characteristics of any gambling activity come together. 216 Annual Report Page 15 of 164

17 The Directorate-General for the Regulation of Gambling 1.4. Gambling activity control It is the responsibility of the DGOJ to ensure the integrity, security, reliability and transparency of gambling operations, as well as compliance with the regulations in force and the conditions established for the operation of gambling activities. In fulfilling its mission, the basic lines of action for controlling gambling activity are as follows: Monitoring and control of unrestricted gambling in Spain. Monitoring and control of lottery games. Crackdown on illegal gambling. The DGOJ, in its inspection function, is responsible for monitoring, auditing and controlling all aspects and administrative, economic, procedural, technical, computer, telematic and documentation standards relating to the development of gambling activities. The monitoring and control of unrestricted gambling in Spain. The monitoring and control of unrestricted gambling in Spain are based on the following activities: The authorisation of technical gambling systems, and the establishment of the gambling technical and functional requirements. The constant monitoring of gambling activities. Verification procedures prior to disciplinary proceedings. The authorisation of technical gambling systems, and the analysis of the technical solvency of new licences. Operators must use duly authorised gambling equipment and software. The authorisation of technical gambling systems is based on technical system adequacy certification reports issued by laboratories specialised in the certification of 216 Annual Report Page 16 of 164

18 Gambling activity control gambling software functionality and by organisations specialising in computer security audit previously designated by the DGOJ. Technical gambling systems are initially authorised within the framework of the procedure for granting general and specific licences. During 216, 12 applications for initial authorisation have been received and 57 have been resolved favourably. TABLE 6: INDICATORS ON THE AUTHORISATION OF LICENCES Total No. of authorisation applications (per licence) No. of authorisations granted (per licence) No. of authorisations declined (per licence) No. of authorisations in progress (per licence) Source: Directorate-General for the Regulation of Gambling. From initial authorisation, technical gambling systems authorisation is continued through the prior authorisation of substantial changes to critical elements, quarterly reports on changes and audits performed every two years. Under the change management procedures framework, a total of 117 applications have been received, with 17 being authorised and 4 declined. The nature of the changes has addressed the following issues: TABLE 7: CHANGE MANAGEMENT PROCEDURES. APPLICATIONS Type No. of applications Gambling on offer 78 Other* 13 Participation channels 1 Software suppliers 6 Major version change 4 CPD 3 Live roulette 3 TOTAL 117 Source: Directorate-General for the Regulation of Gambling. In order to guarantee the quality of certification procedures and the correct interpretation of the regulatory requirements established, coordination and 216 Annual Report Page 17 of 164

19 The Directorate-General for the Regulation of Gambling collaboration with certification bodies and gambling operators is continually undertaken. The constant monitoring of gambling activities The monitoring of authorised gambling is based mainly on the analysis of information relating to activities carried out in Spain. This information is obtained from various sources: Gambling data on the operator monitoring system (Internal control system - ICS) relating to user registration, betting and prizes. Checks made by the operator to the gambler verification web services (General Register of Gaming Access Bans and identity verification) offered by the DGOJ. Technical, operational and financial information provided by operators to the DGOJ. Reports for the purpose of monitoring gambling establishments. Data relating to complaints and claims received by the DGOJ from users. The integrity and quality of the data is fundamental to the maximum efficacy of the DGOJ's information system. For this reason, each year a specific data quality control plan is initiated to ensure the completeness and reliability of the information reported by the operators. The summary of the actions carried out is shown in the following table. TABLE 8: ONGOING MONITORING ACTIONS Action Number Communication made to the operators 87 Incidents opened against operators 1169 Incidents closed 728 Operators' queries answered 5 Source: Directorate-General for the Regulation of Gambling. During 216 some circumstances which required special attention within the aforementioned control plan must take into consideration: The consolidation of the data model which entered into force in December 215. The inclusion of 1 new operators. 216 Annual Report Page 18 of 164

20 Gambling activity control The change in gambling platform of 3 operators. Likewise, the DGOJ continues to collaborate with the Tax Agency and the State Security Forces and Bodies. Throughout the year, these organisations have been collaborated with on up to 4 occasions. In addition, important improvements have been included in the monitoring processes of various aspects of gambling: The individual prohibitions included in letters a) and b) of Article 6.2 of Law 13/211. The deposit limits established by gambling regulation. The uniqueness of the gambling account. Each time an operator starts an activity or markets a specific licence, an ad hoc check procedure is implemented for the operator's technical gambling system, based on a risk-oriented approach. Throughout this year, 36 studies have been undertaken: 7 general licence reviews, and 29 specific licence reviews. Verification procedures In 216 a total of 4 complaints were received in relation to licensed operators. The complaints lodged since the regulated market was set up are detailed in the following table: TABLE 9: COMPLAINTS RELATING TO LEGAL GAMBLING ACTIVITY Total Complaints received Discontinued In prior investigation Source: Directorate-General for the Regulation of Gambling. The complaints received and the processes for the continual monitoring of operators led to 7 verification proceedings being initiated in 216. This lead to 4 proposals to initiate disciplinary proceedings. The proceedings initiated since the regulated market was set up are detailed in the following table: 216 Annual Report Page 19 of 164

21 The Directorate-General for the Regulation of Gambling TABLE 1: PROCEEDINGS FOR THE VERIFICATION OF GAMBLING ACTIVITIES OF LICENSED OPERATORS Verification proceedings initiated Proceedings filed Proposals to initiate penalty proceedings Information requirements Total Source: Directorate-General for the Regulation of Gambling. In the course of 216, 5 information requests were conducted and 19 communications were issued to operators. The monitoring and control of lottery games. With regard to the entities designated by the first additional provision for the marketing of restricted lottery games in Spain, namely Sociedad Estatal de Loterías y Apuestas del Estado S.M.E., S.A. (hereinafter, SELAE or State-owned lottery and gambling entity) and the Spanish National Organisation for the Blind (ONCE): The DGOJ has established a collaboration protocol with SELAE to enable compliance with the legal mandate provided for in Law 13/211. Regarding ONCE, the second additional provision of Law 13/211 establishes in section three thereof: With the aim of preserving strict public control over the gambling activity of ONCE, the powers conferred on the National Gambling Commission and to the Minister of Economy and Finance in relation to restricted activities shall be exercised in relation with ONCE by the Council of the Protectorate, with the exception of the powers that correspond to the Council of Ministers". The monitoring and control activity of lottery games includes the investigation and prosecution of marketing activities or participation in the marketing of reserved lottery games in Spain without the authorisation of the designated operator (SELAE or ONCE) and organising or operating gambling activities in breach of the reservation principle established in Article 4 of Law 13/211. Regarding the marketing of unauthorised lotteries, the number of complaints and proceedings is shown in the following table: 216 Annual Report Page 2 of 164

22 Gambling activity control TABLE 11: MARKETING OF UNAUTHORISED LOTTERY GAMES 212 Complaints received 12 Proceedings initiated 9 Proposals to initiate penalty proceedings Total Source: Directorate-General for the Regulation of Gambling. Regarding the organisation of lottery games in breach of the reservation principle, this activity is shown in the following table: TABLE 12: CARRYING OUT OF GAMBLING ACTIVITIES IN BREACH OF THE RESERVATION PRINCIPLE 212 Complaints received 8 Proceedings initiated 1 Proposals to initiate penalty proceedings Source: Directorate-General for the Regulation of Gambling Total In 216, 15 complaints were received in relation to "Carrying out of gambling activities in breach of the reservation principle", the vast majority of which related to the activity of a single operator. The crackdown on illegal gambling Following the enactment of the Gambling Law 13/211, of 27 May, on gambling regulation, and the granting of licences to gambling operators in June 212, the websites operated by entities which have not obtained a licence in Spain has to cease their activities in Spanish territory. In order to detect potential instances of non-compliance with the implementation of the aforementioned ceasing of activities and to preserve the legal framework established, the DGOJ has developed various measures aimed at eradicating unlicensed online gambling activities from the Spanish market. These actions revolve around two major axes giving continuity to the strategy established in 213: 216 Annual Report Page 21 of 164

23 The Directorate-General for the Regulation of Gambling Maintenance of a census of the gambling websites which allow access from devices connected via IP addresses assigned to the Spanish internet network (connections from within Spanish territory). Verification proceedings prior to the proposal of the commencement of disciplinary proceedings against any websites which have been the subject of complaints, claims or simple mentions to the DGOJ, or through research on internet search engines, social networks or various websites. Preparation of a census of websites which it is possible to access from Spain One of the main measures taken in relation to unlicensed gambling activities has been the compilation of a census of websites that are accessible for gamblers connected from within Spanish territory with the aim of identifying all of the unauthorised gambling on offer to ascertain the extent of such offer and its market position. The above-mentioned census includes information on website operators, the nature of the gambling activities on offer and whether or not they are included within the scope of the Spanish Gambling Regulation Law (LRJ), the index which indicates their position in the online gambling market (Alexa index), the vehicular languages of the website (in particular the Spanish language) and whether or not gamblers residing in Spanish territory (irrespective of whether or not they identify themselves as being residents of Spain) are admitted. In addition, once a website has been registered, it is regularly monitored in order to verify its activity in Spain and, where appropriate, the initiation of a prior information file. The compilation of the census is a very dynamic activity, to which additions and modifications are continually made. At the end of 216, it included a total of 735 websites that are not currently operating as a result of the inspection measures taken, which are detailed below, or due to commercial changes thereto. 216 Annual Report Page 22 of 164

24 Gambling activity control TABLE 13: NUMBER OF WEBSITES CLOSED Total Without a file being opened by the DGOJ With a file being opened by the DGOJ TOTAL Source: Directorate-General for the Regulation of Gambling. Verification procedures prior to the proposal to commence disciplinary proceedings When a complaint or claim is made in relation to a website by a user, or when whatsoever citizen or organisation interested in the legal, secure and responsible functioning of the online gambling market in Spain as well as when the illegal gambling websites census control activities reveal the activity being carried out by a particular unlicensed website in the Spanish gambling market, prior informative proceedings are initiated. Said proceedings consist of the following principal phases: Checking, through the initiation of electronic evidence by the inspecting staff of the DGOJ, on the possibility of access from devices located within Spain to the gambling on offer of a certain unauthorised website. Said gambling on offer must conform to the definition established in art. 3.a) of the LRJ. This will show the identification of the gambling operator performing this activity, the market positioning of the website (Alexa Index), vehicular language, formalisation of a user record, possibility of making a deposit to participate in the gambling on offer and participation in any of the gambling offered on the site. Issuance to the operator (normally cross-border) of a communication containing the facts established, information as to the possible legal consequences of carrying on online gambling activities in Spain without holding the relevant licence or without having applied for one, where this gambling activity is unlicensed, of disablement from access to the gambling on offer on the website operated from Spain. Opening of a new evidence record for the purpose of verifying the possible implementation by the operator of the disablement of access from Spain requested by the DGOJ. Proposal to initiate disciplinary proceedings against the website operator, taking into account the background facts established during the prior 216 Annual Report Page 23 of 164

25 The Directorate-General for the Regulation of Gambling information proceedings and the behaviour of the operator after receiving the request for disablement of access from Spain. It should be noted that within one file there may be more than one website under inspection. The prior information proceedings initiated since the regulated market was set up are detailed in the following table: TABLE 14: ILLEGAL GAMBLING PROCEEDINGS Total Proceedings initiated Proposals to initiate penalty proceedings Agreements to file proceedings Source: Directorate-General for the Regulation of Gambling. The 13 proposals to initiate penalty proceedings have included a total of 51 illegal gambling web portals. Although it is very difficult to quantify the volume of illegal gambling, since we are dealing with an online market which by its very nature is a very broad and dynamic environment, from the outset the DGOJ has done continuous inspection work focused initially on websites (using the Alexa index as a reference) and those which have been the subject of complaint by users, operators or gambling associations, and the results obtained show that the fight against illegal gambling is achieving a positive response, with a high degree of effectiveness among European operators, although less so with those located in other parts of the world. Inspection is an activity which continues and develops over time and is being complemented by the blocking of websites by internet service providers. In addition, in the area of supporting the disciplinary activity, the following actions have been carried out: 216 Annual Report Page 24 of 164

26 Gambling activity control TABLE 15: ACTIONS TO SUPPORT THE DISCIPLINARY ACTIVITY Actions to support the disciplinary activity Verification certificates of interruption of the marketing of the gambling activity by the operator Verification reports on blocking access to the web portals in the providers of the information services Source: Directorate-General for the Regulation of Gambling. Total Disciplinary proceedings The disciplinary powers provided in the Gambling Law 13/211, of 27 May, regulating gambling, are exercised by the Directorate-General for the Regulation of Gambling and, in the case of infringements classified as very serious, by the Minister of Finance and Public Administrations, although Order HAP/1335/212, of 14 June, for the delegation of powers, establishes in its Article 1, which delegates to the heads of the State Secretariats for Finance, Budgeting and Expenditure and Public Administrations the resolution of proceedings and matters corresponding to the powers of the administrative centres dependent on or attached thereto, the decisions and authorisations relating to which are assigned to the Ministry of Finance and Public Administrations by law. Once it has been decided to initiate disciplinary proceedings in relation to infringements provided in the Spanish Gambling Regulation Law, it is the responsibility of the Directorate-General for the Regulation of Gambling to conduct them, pursuant to the provisions of Royal Decree 256/212, of 27 January, implementing the basic structure of the Ministry of Finance and Public Administrations. 216 Annual Report Page 25 of 164

27 The Directorate-General for the Regulation of Gambling In 216, 19 disciplinary proceedings were initiated: TABLE 16: PROCEEDINGS INITIATED DURING THE YEAR Proceedings initiated by the Secretary of State for Finance and Public Administrations Infringement of Gambling Regulation Law 13/211 classified as very serious (Foreseen amount of the penalties 11,1,) Breach of Art. 39.a) The organisation, holding and operation of activities included in the scope of application of this act without the relevant licence. Breach of Art. 39.g) The carrying out of gambling activities, infringing the reserve established in Art. 4 of this act Proceedings initiated by the Director-General for the Regulation of Gambling Infringement of Gambling Regulation Law 13/211 classified as serious (Foreseen amount of the penalties 1,647,) Breach of Art. 4.a) Failure to comply with the requirements and terms and conditions established in the licence and, in particular, the duties in respect of control to guarantee gambling security Breach of Art. 4.b) Allowing access to the gambling activity to prohibited persons, in accordance with article 6 of this Law, provided that the gambling entity knows or should know the concurrence of such prohibitions. Breach of Art. 4.d) Carrying out the promotion, sponsorship and advertising of gambling which is subject of this Law, or intermediation actions, when those who do so are unlicensed or are in violation of the conditions and limits established therein or in violation of the rules in force in this matter, whatever the means used for it. Breach of Art. 4.j) Failure to comply with the technical requirements of the regulations or specification of terms of reference relating to software and communication systems Breach of Art. 4.l) The manufacture, marketing, maintenance or distribution of gambling material owned by the operators who develop reserved gambling activities pursuant to article 4 of this Law without due authorisation Breach of Art. 4.m) Non-payment of prizes to gambling participants. 1 Breach of Art. 41.a) Participating in gambling activities in contravention of the prohibitions established in article 6.2. letters c), d), e), f), g) and h) of this law Annual Report Page 26 of 164

28 Disciplinary proceedings Of the 19 disciplinary proceedings initiated in 216, rulings were made for all as detailed below: TABLE 17: PROCEEDINGS INITIATED AND RESOLVED IN THE YEAR Punitive resolutions 4 4, 11 28,6, 7 85, 5 1,747, Punitive resolution imposing a fine and disqualification 6 1,, 6 6,, 6 7,, 11 11,, Resolutions establishing the non-existence of an infringement resulting in the dismissal of the case Resolution with reprimand 4 - Source: Directorate-General for the Regulation of Gambling. During the first half of 216, all outstanding 16 procedures initiated in 215 were resolved, with the following result: TABLE 18: PROCEEDINGS RESOLVED IN THE YEAR FROM THOSE INITIATED IN A PREVIOUS YEAR Resolution of the file Resolutions imposing a fine and revocation of licence 2 2,, 2 4, 2 9,, 3 4,5, Resolutions resulting in voluntary closure of illegal gambling website Resolutions resulting in partial closure of illegal gambling website 7 7, 5 5, 2 2, 7 7, 1 8, 1 8, Resolutions resulting in a fine (very serious breach) 1 5, 5 1,64,834 Resolutions for serious breaches , ,11,269 Source: Directorate-General for the Regulation of Gambling. Pursuant to article 47.3 of Law 13/211, of 27 May, on gambling regulation, during 216, there were 18 requests made to the most significant telecommunications operators to adopt measures to interrupt the domain name resolution service for queries originating in Spain related to penalised entities who continued to carry out illegal gambling activities in Spain. 216 Annual Report Page 27 of 164

29 The Directorate-General for the Regulation of Gambling 1.6. Institutional relations National level Gambling Policy Board In accordance with the provisions laid down in Article 34 of Law 13/211, of 27 May on gambling regulation, regulating gambling, the Gambling Policy Board is the body for the participation and coordination of the autonomous regions and the State in gambling matters. In particular, the autonomous regions and the State, through the Gambling Policy Board, will promote the relevant measures, including the possibility of presenting proposals on regulations in accordance with their respective powers, to promote convergence of the legal and fiscal regime, as well as the advertising, sponsorship and promotion regulations applicable to any form and type of gambling and operator throughout Spain. The Board comprises the board members who perform responsibilities relating to the gambling activities of all the autonomous regions and cities and an equal number of representatives of the Central State Administration. The chair of the Board is delegated to the Minister of Finance and Civil Service, although through Order HAP/588/212, of 22 March, and subsequently through Order HAP/1335/212, of 14 June, the functions, right to attend and vote corresponding thereto are assigned to the Head of the State Secretariat for Finance. The permanent Secretariat corresponds to the Directorate-General for the Regulation of Gambling, as established during the constituent Board meeting held on 27 June 211. The Gambling Policy Board is, therefore, a non-decision-making body, with equal representation, which makes proposals regarding and studies basic gambling regulations and all aspects of gambling activities, and which by its very nature, requires coordinated action by the State and the autonomous regions. In order to promote the participation and coordination of the governments of the autonomous regions and cities and the State with respect to gambling, the Board is divided up into three working groups: 216 Annual Report Page 28 of 164

30 Institutional relations Regulatory working group Working group dealing with records, studies and reports Working group dealing with technical matters Throughout 216, the Gambling Policy Board has been continuing the work developed in 215. In this regard, a joint meeting of the Regulatory, Technical and Registration Working Groups took place on 12 June 216, in which, firstly, work was resumed on cooperation between the Central State Administration and the Autonomous Regions in connection with the interconnection of the different registers of gambling access bans, as agreed at the plenary of the Gambling Policy Board at its meeting on 7 May 215 and at the joint meeting of the regulatory, technical and registration Working Groups on 5 November 215. In this regard, the meeting presented the main data of the questionnaires on registrations which in May 215 had been sent to the autonomous regions for completion in order to carry out a detailed analysis from the regulatory and management of the different regional registers point of view, and the publication on the DGOJ website ( of the most relevant data regarding its different configuration from the point of view of how possible users of it are impacted. Likewise, a proposal for a regulatory and technical approximation of the interconnection of the registry of banned persons was presented and analysed, as well as a transitional procedure to be applied prior to their implementation. The meeting also dealt with the cooperation on national level online gambling physical terminals, jointly analysing the status of the issue in this area and exploring possible ways of collaborating between the different administrations. On the other hand, the implementation status of the regulatory approximation agreements included in the institutional declaration of the Gambling Policy Board of 17 December 214 was discussed in the context of the Regulatory Rationalisation and Market Unity Programme in the gambling industry. 216 Annual Report Page 29 of 164

31 The Directorate-General for the Regulation of Gambling International scope European Union At international level, the DGOJ has carried out extensive activity at the heart of the European Union. European Commission: Online Gambling Expert Group It has participated in the four meetings of this Experts Group held in Brussels in 216 (19 February, 25 May, 29 September and 16 December), which dealt with various issues, such as the study to establish mechanisms for combating matchfixing, in particular the possibility of the European Commission drafting a Recommendation in this respect, or the identification of best practices in relation to the technical requirements demanded by each Member State when granting their licences to gambling operators. Work has also been done on developing a possible mandate for CEN/CENELEC on a possible European standard on gambling operators' reporting systems. Furthermore, in the context of the Administrative Cooperation Agreement between the online gambling regulatory authorities of the different Member States, in order to exchange information on various aspects related to their regulatory and administrative activity, the structure of the CIRCABC platform - through which regulatory authorities may have access to up-to-date information on the legal regimes and market data of each country of the European Economic Area - has been improved. Council of Europe The DGOJ participates in initiatives carried out under the Enlarged Partial Agreement on Sport (EPAS), the fundamental aim of which is to preserve the integrity of sport and avoid the fixing of sporting events for the purposes of betting. In this context, the Council of Europe Convention on the Manipulation of Sports Competitions was signed by the Spanish State on 7 July 215 but is still pending ratification. 216 Annual Report Page 3 of 164

32 Institutional relations The DGOJ is part of the Working Group created at the request of the Secretariat of the Convention to promote the implementation of national platforms against the manipulation of sports competitions in the different States. Amongst other issues, these platforms are intended to receive, centralise and analyse information on irregular and suspicious bets made in connection with sports competitions taking place in the territory of the Party and, where appropriate, issue the corresponding alerts and cooperate with all relevant organisations and authorities at national and international levels, including the national platforms of other States. Apart from the lines of action referred to above, the DGOJ is the point of contact from a regulatory perspective between the Spanish gambling regulatory body and the regulatory authorities of other countries, both within and outside the EU, with which it maintains a constant flow of information on its regulatory activities which relate to gambling. In particular, in 216 it participated in the meetings held in Vienna from 16 to 18 March with various gambling regulators (France, United Kingdom, Portugal, Italy, Germany and Austria) in order to increase cooperation and to exchange experiences; and the meeting held in Paris on 29 November with gambling regulators from France, Italy and Portugal to discuss issues of common interest such as international fluidity and gambling standards. On the other hand, bilateral meetings have been held with various European regulators: KSA Kansspelautoriteit (Dutch regulator) and Lotteri Inspektionen (Swedish regulator) Throughout 216, the DGOJ has actively participated in various international forums; of note are the 5th Annual European Online Gaming Regulatory Bootcamp, organised by C5 on 1 February in London; ICE Totally Gaming on 2 February in London; the GREF annual meeting on 1 and 2 June; the I-Gaming Forum held on 13 and 14 April in Stockholm; or the Juegos Miami Congress from 31 May to 2 June. Other institutional activities The DGOJ participated in the Third Ibero-American Gaming Summit, held in Mexico City, and in various events in order to recognise the work of other institutions and to strengthen professional ties with them. 216 Annual Report Page 31 of 164

33 The Directorate-General for the Regulation of Gambling Among other events, are the Tenth Acencas Congress, the Seventeenth National FEJAR Congress, the Twentieth National COFAR Congress, the Second Femara Open Forum, the First National Bingo Forum, or various events organised by other administrations or public bodies such as the Workshop on Responsible Gambling organised by the French gambling regulator (Arjel) or attending the National Competition Days organised by the Basque Competition Authority and the Fourth Congress on Competition Law and Regulation. Current issues of the Guarantee of Market Unity Law developed in the National Markets and Competition Commission. On the other hand, the Directorate-General for the Regulation of Gambling has participated as a jury member of the Third International Responsible Gambling Contest convened biannually by ONCE Gambling advertising: co-regulation agreement. Code of conduct on gambling related commercial communication The Directorate-General for the Regulation of Gambling participates in the Joint Committee for the Monitoring of the Code of Conduct for Commercial Communications in relation to gambling activities, whose presidency it also holds. The aforementioned committee is responsible, among other matters, for periodically assessing the application of the Code in relation to the objectives proposed, making such proposals as it deems appropriate to improve and review the Code and familiarising themselves with the reports presented to it by Autocontrol regarding compliance with the Code. Throughout 216, the Joint Committee met in person four times, on 21 January, 27 April, 14 July and 2 November. In each of the meetings Auto-control presented a quarterly report of the activity carried out in the control, application and compliance with the legal and deontological rules which govern gambling advertising. It should be noted that at the Joint Committee meeting on 21 January 216, the proposal by the DGOJ of an interpretative criterion of the Code of Conduct on commercial communications of gambling activities in relation to the scope of section 3 of Ethical standard 8 was approved. 216 Annual Report Page 32 of 164

34 Gambling advertising Ethical standard 8 of the Code of Conduct establishes the principles of selfregulation of commercial communications in audiovisual communication services. In addition to complying with the applicable provisions on commercial communications and self-promotion contained in Law 7/21, of 31 March, on General Audiovisual Communication, and in particular the provisions of article 7 on children s rights, special attention is given to the schedule for issuing commercial communications and self-promotions of gambling activities and taking into account those programmes or programming blocks intended specifically or primarily to an audience of children when they are issued or inserted. None of the clauses (1 to 5) of the aforementioned ethical standard, which contain the specifics applicable to such commercial communications in terms of audiovisual communication and in particular the time and broadcast rules within or with programmes aimed at children, distinguishing between different types of intensity according to different gambling, expressly including lotteries. The lack of express inclusion of lotteries in any of these sections of ethical standard 8, only form or type of gambling in such situation, and taking into account the purpose of the Code of Conduct and the suitability of other provisions contained in it to lotteries, fails to answer the will to stop including this game in any of the specific cases in terms of audiovisual communication which, for the different games, make up those sections. In consideration of the foregoing and given that the current legal or regulatory legal framework does not establish any precision or distinction in relation to the regime to be applied to both types of lottery, in particular in terms of commercial communications, the Directorate-General for Gambling Regulation proposes that lotteries should be considered to be included in section 3 of ethical rule 8 of the Code of Conduct on commercial communications of gambling activities, in which this section explicitly states the rule applicable to lotteries with a deferred effect, as transcribed below: "8 Principles of self-regulation of commercial communications in audiovisual communication services. ( ) 3. Commercial communications and self-promotions of conests included in a programme whose age rating is not "not recommended for children under eighteen"; for deferred lotteries, additional games and raffles will not 216 Annual Report Page 33 of 164

35 The Directorate-General for the Regulation of Gambling have schedule restrictions as long as they are not issued together or inserted into programmes aimed specifically or primarily at children Responsible gambling Responsible gambling corresponds to the rational and sensible choice of the various gambling activity options depending on the situation and personal characteristics of the gambler, thereby preventing this activity from becoming a personal, family or socio-economic problem. The effective definition of the concept of responsible gambling depends on the action and joint participation of regulating bodies, gambling operators and consumers aimed at consolidating efficient, common and coordinated action on this matter. From the standpoint of the protection of public health and consumers, state regulations in force relating to games of chance seek to achieve various fundamental objectives, most notably: the protection of minors and vulnerable persons or groups, prevention of addictive behaviour, mitigation of the potential detrimental effects which games of chance can cause, as well as safeguarding of the rights of those who participate in these activities. In addition, the achievement of these objectives through the implementation of responsible gambling policies, as defined in Article 8 of Law 13/211, of 27 May, supposes the application of steps and preventive measures aimed at raising awareness, intervention and control, which include most notably the following: Responsible gambling strategy and Responsible Gambling Advisory Board In November 212, the Directorate-General for the Regulation of Gambling, in collaboration with the Ministry of Health, Social Services and Equality, through the Government Delegation for the National Plan on Drugs, launched an initiative aimed at establishing a common responsible gambling strategy, with the participation of the gambling industry, of the associations providing aid to those affected by gambling addiction, treatment centres and experts on compulsive gambling, as well as regional and State authorities. 216 Annual Report Page 34 of 164

36 Responsible gambling The Responsible Gambling Advisory Board was created in early 213 and is made up of representatives from the gambling industry, associations for those with a gambling addiction and experts in problematic gambling. Its main function is to advise the DGOJ on devising and implementing a strategy to tackle gambling from very different perspectives, setting out lines of action and effective prevention mechanisms and held one meeting in 216. ( JugarBIEN.es The website formally began its activity in 215 as commitment from the Directorate-General to responsible gambling. Its objective is to become a meeting point in this matter between different users in the gambling market: Public Administrations, consumers and companies, with the DGOJ managing the contents. JugarBIEN.es was awarded the Egaming 215 prize for best responsible gambling initiative. Within its content is a section dedicated to safe gambling, which offers detailed information on the fundamentals of online gambling linked to safety parameters: fair, principled, reliable and transparent gambling. 216 Annual Report Page 35 of 164

37 The Directorate-General for the Regulation of Gambling Two videos related to responsible gambling were also included during the year with the aim of contributing to the dissemination of information: gambling and self-exclusion and gambling and minors. Within the campaign to promote the contents various social networks have been used: YouTube, Twitter and Facebook. Finally, during 216 through JugarBIEN.es, 61 queries from different users have been solved. Study on prevalence, behaviour and characteristics of gamblers In 216, the Study on prevalence, behaviour and characteristics of gamblers in Spain ( was published in coordination with the Directorate-General for Gambling Regulation. The initial questionnaire was designed by a team of specialists led by Mr Francisco Labrador Encinas, the field work was carried out by the company IKERFEL, Investigaciones de Mercado y Marketing Estratégico, and the company Análisis e Investigación charged with analysing the information obtained. In the study based on resident population in Spain over 18 years of age, 6,816 face-to-face questionnaires were carried out, with 35 additional face-to-face questionnaires of residents in Spain aged between 15 and 17. Also, 53 questionnaires were carried out via telematic means to Spanish residents aged over 18, whilst 5 questionnaires were carried out using the same means on Spanish residents aged over 18 who had gambled online with a monetary bet in the two months prior to data capture. The results showed a prevalence rate in the Spanish population of.9% for those classified as pathological gamblers and 1% for those classified as problem gamblers, values which reduce to.3% and.6% respectively, if working with the results linked to gambling in the last year. Likewise, 76% of people state that they have gambled in the last year. 216 Annual Report Page 36 of 164

38 Responsible gambling Clinical study As a follow-up to the studies coordinated by the DGOJ, researchers from the Bellvitge Hospital in Barcelona have been assigned a clinical study with the aim of deepening the knowledge of gambling addictions in people who have gone or are going through this situation. With this objective, a questionnaire was designed and sent to different entities working in this field to be completed by volunteers who met the objective profile. The research team has been analysing the sample data and its publication is expected soon. Gambler Verification System (SVJ): Identity Verification System and the RGIAJ The controls on access to gambling are aimed at protecting vulnerable groups, especially minors and those registered in the General Register of Gaming Access Bans (RGIAJ). Since both groups cannot access gambling, either by legal order, by public health or by individual decision, in order for a person to have access to any online gambling, it is obligatory that operators perform a prior verification of the gambler's identity and use secure accreditation mechanisms. The DGOJ places at the disposal of operators the online mechanisms required to carry out both of the above-mentioned checks electronically. For the purpose of facilitating the participant identity check process for operators, the DGOJ makes an Identity Verification System available, based on the data contained in the register of the Ministry of the Interior, allowing them to verify in real time the data of potential users who for identification purposes provide their national identity document (DNI) or foreigner identification number (NIE). In 216, 3,925,557 identity verification requests were made, approximately 1% fewer than in 215. Of these requests 73.71% were successful (84.71% in 215). Through licensed operators using this system, a total of 268 queries have been addressed. On the other hand, prior to allowing a user access to online gambling activities, the gambling operator is obliged to verify their possible registration in the General Register of Gambling Access Bans, administered by the DGOJ, which is responsible for its effective functioning and control. This register, in which anyone can be included, at their own request or by a court order, enables exclusion from participation in gambling activities that require the verification referred to above (both remote and land based) throughout Spain. The registration in the General 216 Annual Report Page 37 of 164

39 The Directorate-General for the Regulation of Gambling Register of Gambling Access Bans can be made through the use of a form presented land based at a public registry of any Public Administration or through the electronic office of the DGOJ, which, through that means, is immediately effective. At 31 December 216, the General Register of Gambling Access Bans contained 37,749 registered parties, 7.37% more than the close of the previous year People registered in the General Register of Gambling Access Bans at the end of the period Source: Directorate-General for the Regulation of Gambling. Chart 3: People registered in the RGIAJ at month-end 216 Annual Report Page 38 of 164

40 Responsible gambling Structure of registrations by age range years 2.24% years 26.73% > 65 years 4.25% years 8.13% years 14.21% years 16.45% Source: Directorate-General for the Regulation of Gambling. Year 216. Chart 4: Structure of registrations by age range As with previous years, in 216 almost all of the people registered in the General Register of Gambling Access Bans have voluntarily registered, with Andalusia being the autonomous region where the greatest number of registration applications were made (23.91% of the total), followed by Madrid (14.96% of the total), Aragon (1.79% of the total), Valencia Region (9.9%) and Catalonia (7.36%). In 216, the new increases were mostly men (8.52%) compared to women (19.48%); numbers similar to those of previous years. As for the age distribution, again this year the new increases in the segments from 26 to 35 and 36 to 45 prevail, although there is an increasing weight of those under 26 compared to those above this age. 216 Annual Report Page 39 of 164

41 The Directorate-General for the Regulation of Gambling Distribution of registrations in the General Register of Gambling Access Bans per year and age group years years years years years > 65 years ,192% 3,1183% 26,2966% 15,8326% 1,919% 5,6415% ,1395% 29,18% 24,8156% 16,499% 11,417% 6,362% ,435% 28,6342% 25,6478% 18,621% 9,1348% 4,9188% ,1167% 3,7558% 24,6952% 13,7583% 9,4741% 6,1999% ,4496% 3,2378% 26,7271% 14,2129% 8,1257% 4,2469% Source: Directorate-General for the Regulation of Gambling. Chart 5: Distribution of registrations in the General Register of Gambling Access Bans per year and age group Finally, among the people who have registered in the General Register of Gambling Access Bans in 216 and who were already registered in it (343) there is a significant percentage (53.64%) that have a time between deregistration and registration of less than a year, and 21.87% for between 1 and 3 years. Most of the recurrences (52.48%) were people who were enrolled in the General Register of Gambling Access Bans in the previous period for less than 1 year, whereas 27.41% were previously enrolled between 1 and 3 years. 216 Annual Report Page 4 of 164

42 Responsible gambling Source: Directorate-General for the Regulation of Gambling. Permanence: time spent in the General Register of Gambling Access Bans the previous time. Elapsed: Time elapsed between previous deregistration and new registration. Chart 6: Recurrences of new registrations of people previously enrolled Information, Transparency and Good Governance The online gambling market came into being in June 212, allowing online gambling activities to be offered and commercialised by licensed operators meeting the technical and legal requirements necessary to ensure fair, honest, reliable, transparent gambling; in short, secure gambling providing participants with advantages. The initiatives can be summarised as follows: Public provision of basic information of licensed operators Safe gambling initiative ( 216 Annual Report Page 41 of 164

43 The Directorate-General for the Regulation of Gambling Reports on the benefits of gambling with licensed operators and offers an information booklet accessible at the electronic office which is complemented with the information provided on the subject offered by JugarBIEN.es: Also, continuing with the commitment to favour access to information and knowledge of the state gambling market, together with the preparation of its Annual Reports, the DGOJ produced four quarterly reports in 216 on the regulated online gambling market in Spain ( and has made basic information on the online gambling market available to users in a free and open format: In addition, it has also published the report: Analysis of the profile of online gamblers 215, in which market issues are analysed with the analysis centred around the gambler: Use of electronic means and office As a consequence of the entry into force of Law 39/215 and the compulsory electronic interaction, 1,469 electronic requests were made (1,125 by operators), and 1,184 electronic notices were made available. In the case of citizens, 5,46 requests have been received, of which 344 were 1% electronic, 8 mixed (filled in at the electronic office of the Directorate-General but presented land based) and 5,36 on paper. Notices to Appear to citizens are residual (331). The set of requests processed electronically has been: 216 Annual Report Page 42 of 164

44 Information, Transparency and Good Governance TABLE 19: REQUESTS PROCESSED ELECTRONICALLY PROCESSES Electronic Request for registry, modification or removal in the General Register of Gambling Access Bans 261 Authorisations for Occasional Gambling (Raffles) 11 Request for certification of status in the Registry of Persons Linked to Gambling Operators Request for Registry, cancellation or modification in the Registry of Persons Linked to Gambling Operators at the request of the Operator. 26 Complaints and claims on gambling 35 Communications Rated from Gambling Operator to the DGOJ 116 Request for substantial changes to the technical gambling system for extraordinary security emergency 2 Request for substantial changes to the technical gambling system 93 Request for Authorisation of the Technical Gambling System 12 Request for Authorisation to Ships of Regular Passenger Lines 7 Request for the Installation of Recreational Machines on Authorised Ships Applications for Special Gambling Licences. 14 Information requirements under the framework of Law 13/211 3 Addition of information to a file already opened 28 Request for certification of status in the Registry of Gambling Access Bans. 27 Annual accounts, management and audit reports Submission of information relating to the second quarter of Submission of information relating to the third quarter of Submission of quarterly report on changes to the technical system Third Quarter Claims against the DGOJ 1 Download data from the General Licensing Register, the Operator Linked Registry and other additional information 16 Notification of blocked or suspended accounts 133 Weekly submission of half-yearly economic data for the second half of Submission of information relating to the fourth quarter of Generic Communications to the DGOJ 284 Submission of quarterly report on changes to the technical system Fourth quarter Submission of information relating to the first quarter of Submission of quarterly report on changes to the technical system First quarter Annual accounts, management and audit reports Submission of information relating to the second quarter of Submission of quarterly report on changes to the technical system Second quarter Submission of information relating to the third quarter of Submission of quarterly report on changes to the technical system Third Quarter TOTAL 1469 Source: Directorate-General for the Regulation of Gambling. Enquiries and suggestions Through the electronic office in 216, a total of 285 queries and suggestions were answered, 1.94% fewer than in 215 and 16.67% fewer than in 214. The subjects on which they have focused are the following: 216 Annual Report Page 43 of 164

45 The Directorate-General for the Regulation of Gambling TABLE 2: ENQUIRIES AND SUGGESTIONS QUERIES 216 Authorisations for occasional gambling (raffles, contests, etc.) 41 Sweepstakes for advertising or promotional purposes 15 Gambling information/reports 7 Complaints 9 Information on claims and complaints 3 Land based gambling 2 Gambling licences 44 Lotteries 13 Regulation 63 Complaints 15 General Register of Gaming Access Bans (RGIAJ) 7 Tax matters 22 Identity verification 15 Total 285 Source: Directorate-General for the Regulation of Gambling. In addition, there are other channels through which the Directorate- General receives queries from various interested parties (mainly received through land based registration or ). The following queries have been resolved through these means: 57 related to authorisation procedures 5 linked to ongoing supervision actions 97 on various aspects relating to the regulation of gambling activities and, in particular, on the legality of marketing, advertising and promotion of gambling 164 queries related to the General Register of Gambling Access Bans or the processing of complaints and claims Finally, it should be noted that, through the Transparency Portal of the Government of Spain, one query was received in 216. Support and use of electronic media As a result of the use of electronic media for the submission of applications, a total of 282 queries or incidents have been submitted by citizens and operators to the 216 Annual Report Page 44 of 164

46 Information, Transparency and Good Governance mailboxes set up by the DGOJ for this purpose, which is in the order of 4% of all requests processed through the electronic office. The distribution of these is as follows: TABLE 21: TYPE OF ISSUES RELATED TO THE USE OF ELECTRONIC MEDIA User support How to register in the office Browser access problems Problems using the edni (electronic national identity document) How to access a notice Getting an electronic certificate Forwarded by licensed operators TOTAL Source: Directorate-General for the Regulation of Gambling. Related to the office Complaints As for claims, in 216, there were 124 claims regarding gambling received compared to 117 in 215, 67 in 214, 14 in 213 and 29 in 212, with the following breakdown by type of gambling: TABLE 22: CLAIMS LODGED IN RELATION TO GAMBLING Lottery tickets Online betting SELAE and ONCE lotteries 4 8 Casinos, Poker and online bingo 8 1 Online slot machines 8 2 Other TOTAL Source: Directorate-General for the Regulation of Gambling. 216 Annual Report Page 45 of 164

47 The Directorate-General for the Regulation of Gambling The distributions by reason of claim and by amount are shown in the following graphs: Claims according to reason. 215 and WITHDRAWAL WINNINGS CANC EL CHANGE SUSPENSION/ ADVERTISING OF DISCONTINUANCE RESTRICTION OF CONTENT OF BETS OTHE R FUNDS INCIDENTS WITHHELD BET BET INSTALLMENT CLOSED ACCOUNT BONUSES OF BETS DEREGISTERED CONTRACT Source: Directorate-General for the Regulation of Gambling. One claim can have more than one reason. Chart 7: Claims according to reason. 215 and 216 Claims according to amount. Year 216 Indeterminate amount/without 21.77% amount 33.6% % > 1, 2.97% % Source: Directorate-General for the Regulation of Gambling. Chart 8: Claims according to amount. Year Annual Report Page 46 of 164

48 Information, Transparency and Good Governance Gambling duties In relation to the collection of gambling duties, during 216 the figure exceeded 12.6 million euros and had the following distribution: TABLE 23: REVENUES FROM GAMBLING DUTIES DENOMINATION OF TAXABLE TRANSACTIONS No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT a) Issuance of register certificates b) Issuing of technical evaluation reports 1-38, 2 76, -38, -76, c) Registration in the General Licence Register 13 3, 41 12, , ,5 d) Request of licences 1 8, 13 1,3, 1 1, 11 4, d) Request of authorisations ,2 14 1,3 d) Request of licences. Renewal 67 67, 12 12, e) Inspection actions f) Regulatory actions 55 8,631, ,159, ,696, ,516, TOTAL 83 8,73, ,52, ,647, ,639, Source: Directorate-General for the Regulation of Gambling. The amounts include refunds where applicable. Finally, the DGOJ maintains protocols and security measures for the information related to the exercise of its functions. In 216 there were 72 electronic actions against the systems (97.22% of high intensity), which have been properly controlled and neutralised % of the actions were intrusion attempts, 34.72% attempts to collect information and 2.78% malicious code. 216 Annual Report Page 47 of 164

49

50 Gambling in Spain 2. GAMBLING IN SPAIN The national gambling market in Spain is developed by means of a lottery segment with restricted activity and additional land based and online segments. The lotteries with restricted activity in the entire Country are commercialised by two operators: Sociedad Estatal Loterías y Apuestas del Estado S.M.E., S.A. (SELAE) and the Spanish National Organisation for the Blind (ONCE), while the remainder of the land based market is mainly made up of betting, casinos, bingo halls, gambling premises and type B machines. In the online market licensed operators commercialise the various forms of legal gambling. This vision is completed with the different gambling which is developed in autonomous regions and cities in the exercise of their powers. The data below is derived from the aggregation of various sources (mainly DGOJ, SELAE, ONCE, and autonomous regions) and constitute estimates on the main variables of each gambling. The estimated gross gambling revenue in 216 is 8, million euros, 3.3% more than the previous year % corresponds to lottery games (4,127.4 million euros), 29.99% to Type B machines (2,519.2 million euros), 7.63% to betting (64.74 million euros), 6.98% to bingo ( million euros), 4.87% to casino (49.3 million euros) and 1.39% to other gambling ( million euros). 216 Annual Report Page 49 of 164

51 Gambling in Spain Estimates on gross gambling revenue in Spain 12, GROSS GAMBLING REVENUE 1, 8, , 6, 4, 2, Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado (lotteries and betting), the Spanish National Organisation for the Blind (lotteries), the Ministry of the Interior (casinos), the governments of the autonomous regions and cities (type B Machines, regional betting, regional lotteries and regional online gambling), Spanish Confederation of Bingo Hall Owner Organisations (bingo), and the Directorate-General for the Regulation of Gambling (national online gambling). For type B machines, estimates on quantities not reported are made according to the methodological note. Millions of euros. Chart 9: Estimates on the gambling market in Spain.216 Contribution to gross gambling revenue. Year 216 Betting 7.63% Casino 4.87% Type B Machines 29.99% Bingo 6.98% Other 1.39% Lotteries 49.14% Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado, the Spanish National Organisation for the Blind, the Ministry of the Interior, the governments of the autonomous regions and cities, CEJ Bingo, and the Directorate-General for the Regulation of Gambling. Other: Online poker, online slot machines, National level contests and Other specific gambling products in the Community of Madrid other than betting. Chart 1: Contribution to gross gambling revenue. Year Annual Report Page 5 of 164

52 Gambling in Spain Gross gambling revenue would have evolved positively in most segments, with special intensity in betting and other gambling thanks to online slot machines, except for slight decreases in lotteries and bingo. OTHER BINGO Evolution of gross gambling revenue TYPE B MACHINES CASINO 1, BETTING LOTTERIES TOTAL 9, 8, 7, 6, 5, 4, 3, 2, 1, Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado, the Spanish National Organisation for the Blind, the Ministry of the Interior, the governments of the autonomous regions and cities, CEJ Bingo, and the Directorate-General for the Regulation of Gambling. Other: Online poker, online slot machines, National level contests and Other specific gambling products in the Community of Madrid. Millions of euros. Chart 11: Evolution of gross gambling revenue. On the other hand, of the estimated gross gambling revenue, 38.94% corresponds to SELAE (3,27.61 million euros), 29.99% to type B machines (2,519.2 million euros), 11.16% to ONCE ( million euros), 6.88% to land based bingo ( million euros), 5.11% to national online gambling ( million euros), 4.8% to land based casino gambling ( million euros) and 3.85% to specific gambling of the autonomous regions ( million euros). In terms of the gambling segments included in this report, it should be noted that in 216 Lottery forms are still the most relevant segment in amounts gambled (28.97%), gross gambling revenue and the relationship between both variables, although again its relative weight with respect to the total has been reduced by the evolution of other forms, especially Betting; type B Machines would follow in importance, with an estimated 26.19% of the total. Betting contemplated in this 216 Annual Report Page 51 of 164

53 Gambling in Spain report would represent 18.98% of the amounts gambled, while the casino gambling sector would be 12.56% of the total, the Bingo gambling sector 5.36%, and Other gambling 7.93%. Betting 18.98% Distribution of the gambling market by segment in terms of amounts gambled Year 216 Casino 12.56% Type B Machines 26.19% Bingo 5.36% Other 7.93% Lotteri es 28.97% Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado, the Spanish National Organisation for the Blind, the Ministry of the Interior, the governments of the autonomous regions and cities, CEJ Bingo, and the Directorate-General for the Regulation of Gambling. Other: Online poker, online slot machines, National level contests and Other specific gambling products in the Community of Madrid. Chart 12: Distribution of the gambling market by segment in terms of amounts gambled Year 216 The contribution to gross gambling revenue per channel is similar to that of previous years, with a greater weight attributed to the land based channel. 216 Annual Report Page 52 of 164

54 Gambling in Spain The gambling market by channel. Contribution to gross gambling revenue IN PERSON ONLINE 6.9% 93.91% Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado (lotteries and betting), the Spanish National Organisation for the Blind (lotteries), the Ministry of the Interior (casinos), the governments of the autonomous regions and cities (type B Machines, regional betting, lotteries and regional online gambling), Spanish Confederation of Bingo Hall Owner Organisations (bingo), and the Directorate-General for the Regulation of Gambling (national online gambling). Chart 13: The gambling market by channel Contribution to gross gambling revenue. Evolution of gross gambling revenue in Spain 1, 9, 8, 7, 6, 5, 9, , , , , ,24.38 IN PERSON ONLINE 2,5 2, 1,5 1, 4, 3, , 1, Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado (lotteries and betting), the Spanish National Organisation for the Blind (lotteries), the Ministry of the Interior (casinos), the governments of the autonomous regions and cities (type B Machines, regional betting, lotteries and regional online gambling), Spanish Confederation of Bingo Hall Owner Organisations (bingo), and the Directorate-General for the Regulation of Gambling (national online gambling). Evolution of the online segment on the right axis. Online gross gambling revenue data for 211 based exclusively on Sociedad Estatal Loterías y Apuestas del Estado Chart 14: Evolution of gross gambling revenue by channel. 216 Annual Report Page 53 of 164

55 Gambling in Spain Evolution of the make-up of gross gambling revenue IN PERSON ONLINE 1% 7% 99% 98% 6% 97% 5% 96% 4% 95% 94% 3% 93% 2% 92% 91% 1% 9% % Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado (lotteries and betting), the Spanish National Organisation for the Blind (lotteries), the Ministry of the Interior (casinos), the governments of the autonomous regions and cities (type B Machines, regional betting, lotteries and regional online gambling), Spanish Confederation of Bingo Hall Owner Organisations (bingo), and the Directorate-General for the Regulation of Gambling (national online gambling). Evolution of the online segment on the right axis. Chart 15: Evolution of the make-up of gross gambling revenue Land based channel The estimated land based gross gambling revenue would have improved positively compared to the previous year (1.64%), reaching a total of 7, million euros. 216 Annual Report Page 54 of 164

56 Land based channel Land based channel gross gambling revenue 1, GROSS REVENUE 9, 7, , 7, 6, 5, 4, 3, 2, 1, Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado (lotteries and betting), the Spanish National Organisation for the Blind (lotteries), the Ministry of the Interior (casinos), the governments of the autonomous regions and cities (type B Machines, regional betting, lotteries and regional online gambling), Spanish Confederation of Bingo Hall Owner Organisations (bingo). For type B machines, estimates on quantities not reported are made according to the methodological note. Since there is not sufficient breakdown per channel in the lottery data for Catalonia in 214, this year is not included in this section. Millions of euros. Chart 16: land based channel revenue As for the contribution to gross gambling revenue, the main contributors would be SELAE (4.7%) and Type B Machines (31.94%), followed by ONCE (11.8%), Bingo (7.32%), Casino (4.34%) and the autonomous regions (3.9%). 216 Annual Report Page 55 of 164

57 Gambling in Spain Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado (lotteries and betting), the Spanish National Organisation for the Blind (lotteries), the Ministry of the Interior (casinos), the governments of the autonomous regions and cities (type B Machines, regional betting, lotteries and regional online gambling), Spanish Confederation of Bingo Hall Owner Organisations (bingo). For type B machines, estimates on quantities not reported are made according to the methodological note. Chart 17: Contribution to gross gambling revenue for the land based channel In the year-on-year evolution, the largest increase corresponds to the autonomous regions (25.69%) and casino games (8.91%), with positive and negative changes being below 2.5% in all other cases. 216 Annual Report Page 56 of 164

58 Land based channel Evolution of gross gambling revenue. In person. 1,, CCAA MÁQUINAS "B" ONCE TOTAL BINGO CASINO SELAE 9,, 8,, 7,, 6,, 5,, 4,, 3,, 2,, 1,, Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado (lotteries and betting), the Spanish National Organisation for the Blind (lotteries), the Ministry of the Interior (casinos), the governments of the autonomous regions and cities (type B Machines, regional betting, lotteries and regional online gambling), Spanish Confederation of Bingo Hall Owner Organisations (bingo). For type B machines, estimates on quantities not reported are made according to the methodological note. Since there is not sufficient breakdown per channel in the lottery data for Catalonia in 214, this year is not included in this section. Millions of euros. Chart 18: Evolution of the gross gambling revenue for the land based channel 216 Annual Report Page 57 of 164

59 Gambling in Spain Evolution of amounts gambled. In person. 3,, 25,, CCAA MÁQUINAS "B" ONCE TOTAL BINGO CASINO SELAE 2,, 15,, 1,, 5,, Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado (lotteries and betting), the Spanish National Organisation for the Blind (lotteries), the Ministry of the Interior (casinos), the governments of the autonomous regions and cities (type B Machines, regional betting, lotteries and regional online gambling), Spanish Confederation of Bingo Hall Owner Organisations (bingo). For type B machines, estimates on quantities not reported are made according to the methodological note. Since there is not sufficient breakdown per channel in the lottery data for Catalonia in 214, this year is not included in this section. Millions of euros. Chart 19: Evolution of amounts gambled for the land based channel Sociedad Estatal Loterías y Apuestas del Estado Land based gambling operated by Sociedad Estatal Loterías y Apuestas del Estado S.M.E., S.A., with sales of 8, million euros, represents 98.68% of total gambling business volume and an evolution of.15% over the previous year. However, land based gross gambling revenue (3,21.21 million euros) declined in 216 (-.73%) compared to the 5.3% increase in the previous year. 216 Annual Report Page 58 of 164

60 Land based channel Land based gambling data. Loterías y Apuestas del Estado Prizes Gross gambling revenue Amounts gambled 1, 8, , 8, 7, 6, 5, 4, 3, 2, 1, Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado. Millions of euros. Chart 2: Data of land based gambling. Sociedad Estatal Loterías y Apuestas del Estado In 216 the National Lottery (Christmas Draw, New Year's Draw and Other Periodical Draws) recorded land based sales of 4, million euros, up by 2.6% on 215. In the case of the Primitiva Lottery and other similar lotteries (El Gordo de la Primitiva, Bonoloto and Euromillions, with the possibility of The Joker and the Million gamble since 216), sales of 3, million euros were registered, representing a 2.29% drop compared to 215. For their part, Sports Betting (Quiniela and Quinigol) recorded land based sales during 216 of million euros, 11.46% less than in 215. Lastly, Betting on HorseRacing Events (Loto Turf and Quíntuple Plus) yielded sales of 3.89 million euros, down by 6.11% on 215. In 216 the breakdown of land based gambling by form of gambling and amounts gambled was as follows: National Lottery (57.14%), Active gambling (4.3%), Sports Betting (2.78%) and, lastly, Betting on Horse-Racing Events (.4%). 216 Annual Report Page 59 of 164

61 Gambling in Spain 2,5 Gross land based gambling revenue by form 2, 1,5 1, , , , , ,69.4 1, , , NATIONAL LOTTERY ACTIVE GAMBLING BETS ON SPORTING BETS ON HORSE-RACING EVENTS EVENTS Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado. Millions of euros. Chart 21: Gross land based gambling revenue by form SELAE. 6, 5, 4, Land based sales volume by form of gambling 4, , , , , , , , , 2, 1, NATIONAL LOTTERY ACTIVE GAMBLING BETS ON SPORTING BETS ON HORSE-RACING EVENTS EVENTS Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado. Millions of euros. Chart 22: land based sales volume by form of gambling SELAE. 216 Annual Report Page 6 of 164

62 Land based channel Territorially, 44.99% of land based sales are distributed among the first three autonomous regions in terms of sales volume (Madrid, Andalusia and Catalonia) and 74.46% in the first seven (which, along with the previous ones, are: Valencia Region, Castillla-León, Galicia and the Basque Country), with a stable trend over time. The autonomous regions in which the National Lottery recorded the greatest volume of amounts gambled in 216 were Madrid (15.3%) and Catalonia (14.5%), while the volume for land based Sports Betting was Catalonia (23.12%) and Andalusia (15.39%). In the case of the Primitiva Lottery and other similar lotteries, the two leading autonomous regions in terms of amounts gambled in 216 were Andalusia (16.3%) and Catalonia (14.%), with the figures for Betting on Horse-Racing Events as follows: Madrid (2.94%) and Andalusia (12.97%) Spanish National Organisation for the Blind The ONCE land based gambling, with 1,9.48 million euros in sales in 216, increased 5.88% compared to 215. On average, in the last five years inperson gambling offered by ONCE, which includes the sales agents channel and the additional channel, have accounted for 99.56% of the operator's sales. The gross gambling revenue has been positive in absolute terms to reach million euros in 216,.56% more than in the previous year, accounting for an average of 51.32% in sales over the last five years. 216 Annual Report Page 61 of 164

63 Gambling in Spain Data of land based gambling. ONCE Prizes Gross gambling revenue 2, Amounts gambled 1,8 1,9.48 1,6 1,4 1,2 1, Source: authors of the report, based on data provided by the Spanish National Organisation for the Blind. Net data relating to commission on transactions for the sale of the Spanish Red Cross lottery tickets. Millions of euros. Chart 23: Data of land based gambling. ONCE In 216 the breakdown of amounts gambled land based by form of gambling offered by the Spanish National Organisation for the Blind was as follows: Cupón (71.86%), Active gambling (7.37%) and Instant Lottery (2.77%), with a declining importance of Cupón over the last five years. As for gambling forms within the land based channel, there is still a marked difference in behaviour as in previous years. In 216 the Cupón form (Daily draw, Cuponazo lottery, Weekend lottery and One-off draw) recorded sales of 1, million euros, down by.64% compared to the previous year. In the case of Active gambling (7/39, SuperONCE and Eurojackpot), sales of 14.4 million euros were posted, showing a positive performance compared to the previous year (3.92%). In terms of Instant Lottery, sales stood at million euros, 25.96% more than in 215. Regarding gross gambling revenue, the negative evolution of the Cupón ( 4.9%) stands out, compared to positive values for Active gambling (31.26%) and Instant Lottery (2.32%). 216 Annual Report Page 62 of 164

64 Land based channel The Autonomous Regions in which Cupón marketed land based has shown a greater volume of amounts gambled in 216 have been: Andalusia (28.92%) and Catalonia (13.42%), while in Active Gambling it is Andalusia (26.41%) again and the Valencia Region (11.29%) and for Instant Lottery, Andalusia (26.25%) and Catalonia (11.35%). Gross land based gambling revenue by form , CUPÓN LOTTERY TOTAL ACTIVE GAMBLING INSTANT LOTTERY TOTAL Source: authors of the report, based on data provided by the Spanish National Organisation for the Blind. Millions of euros. Chart 24: Gross land based gambling revenue by form ONCE 216 Annual Report Page 63 of 164

65 Gambling in Spain 2, 1,8 Land based sales by form of gambling 1, , , , ,6 1,4 1,2 1, 8 1, , , , CUPÓN LOTTERY TOTAL ACTIVE INSTANT TOTAL GAMBLING LOTTERY Source: authors of the report, based on data provided by the Spanish National Organisation for the Blind. Millions of euros. Chart 25: land based sales by form of gambling ONCE Casino Games The online casino game segment appears to have shown positive behaviour again in 216. Table games remain the main source of income and gross gambling revenue. In terms of amounts gambled, there would have been a new recovery in activity, with almost 1,8 million euros estimated in 216 and a variation of 7.48% over the previous year, as well as a similar evolution in net income of the whole of the activity and gross gambling revenue (8.85% and 8.91% respectively). The number of casinos and establishments with casino games which were active in 216 was Annual Report Page 64 of 164

66 Land based channel 2, 1,8 1,6 Evolution of Casino gambling data Net income 1, Prizes Amounts gambled 1,4 1,2 1, Source: Ministry of the Interior. Millions of euros. Chart 26: Evolution of Casino gambling data Gross gambling revenue from tables is still the main contributor to total net income, standing at million euros (52.3% of the total in 216). In the context of the activity as a whole, revenue from fees for admission to premises is largely token, standing at: EUR 1.92 million (.52% of the total). Gross gambling revenue from machines ( million euros) accounted for 39.56% of the total, while tips accounted for 7.63% of this total (28.45 million euros). 216 Annual Report Page 65 of 164

67 Gambling in Spain 8 7 Gross gambling revenue and net income from the activity Gross gambling revenue Net income Source: Ministry of the Interior. Millions of euros. Chart 27: Gross gambling revenue and net income of the activity: tables, machines, tips and admission 4 Net income by type of source Admission Gross Revenue from Machines Gross Revenue from Tables Tips Source: Ministry of the Interior. Chart 28: Net income by type of source in casinos. Millions of euros. 216 Annual Report Page 66 of 164

68 Land based channel The average net income per visitor has changed the trend seen in recent years, with a slight positive evolution of the average net income per day of activity. 9 Average net income per visitor Source: authors of the report, based on data provided by the Ministry of the Interior. Euros. Chart 29: Average net income per visitor Average net income per scheduled day of activity 25, 2, 22, , , , , , , 1, 5, Source: Compiled by the authors of the report, based on data provided by the Ministry of the Interior. Euros. Chart 3: Average net income per scheduled day of activity 216 Annual Report Page 67 of 164

69 Gambling in Spain As for the number of game tables accounted for, there has been an increase to 465 (14.25%) (note the evolution of establishments), which together with a 9.77% increase in gross gambling revenue have led to the revenue per game table in 216 dropping 3.92%, with an average value of 419,43.14 euros per table. On the other hand, as for Type C machines, the units would have increased by 5.%, while the revenue would have been 7.79%, resulting in an average net income in the year of 66,298.2 euros per machine (64, euros in 215). 5, 45, 4, 35, Average margin per casino table 436, ,43 41, , , ,26 3, 25, 2, 15, 1, 5, Source: authors of the report, based on data provided by the Ministry of the Interior. Euros. Chart 31: Evolution of the average gross gambling revenue per casino table 216 Annual Report Page 68 of 164

70 Land based channel 8, 7, Average margin per casino machine 64,581 66,298 6, 5, 44,173 44,678 46,753 52,831 4, 3, 2, 1, Source: authors of the report, based on data provided by the Ministry of the Interior. Euros. Chart 32: Average margin per casino machine Fluctuations in amounts gambled in casinos by origin 1,2, 1,, 1,79, ,974 Tables 884,17 Machines 941,1 992,734 1,64,26 8, 682,35 735,955 6, 529, ,12 551,845 58,27 4, 2, Source: Ministry of the Interior and own estimates. Thousands of euros Chart 33: Fluctuations in amounts gambled in casinos by origin 216 Annual Report Page 69 of 164

71 Gambling in Spain As for the territorial distribution of the amounts gambled, the structure remains stable over time, with 87.55% of the total of this variable distributed among the 6 first autonomous regions. 6, 5, Amounts gambled by autonomous region. Tables and Machines , 3, 2, 1, CATALONIA MADRID VALENCIA REGION ANDALUSIA CANARY ISLANDS BALEA RIC ISLANDS BASQUE COUNTRY EXTREMADURA MURCIA CASTILLA-LEÓN Castilla La Mancha GALICIA CANTABRIA ARAGON ASTURIAS LA RIOJA MELILLA CEUTA Source: authors of the report, based on data provided by the Ministry of the Interior. No data from Navarre. Thousands of euros. Chart 34: Amounts gambled by autonomous region. Tables and Machines Type B Machines in hospitality and lounges. The estimated number of Type B Machines (199,156 units in 216 versus 27,245 units in 215) would have varied in 216 by -3.9%. However, it is worth noting the difficulty of making these estimates, since in this type of gambling different events converge. Firstly, they are susceptible to being installed in different locations, making it difficult to account for them. On the other hand, the limitation on the total number of machines in the autonomous regions, or the situations of temporary machine downtime in some of them, means that the relative figures on the overall increase or decrease of the number may not be totally representative of the reality of the sector. Finally, it is not easy to make approximations as to the economic value of this type of gambling given the tax differences between autonomous regions. Therefore, in light of all of the above the estimates presented should be taken with caution. 216 Annual Report Page 7 of 164

72 Land based channel Type B machine gambling premises 26, 21, 23, ,293 27,974 22,427 27, ,156 16, 11, 6, 1, Source: autonomous regions and cities Aragon: hospitality, gambling halls and bingo. Galicia: hospitality. Valencia Region: hospitality and gambling halls Melilla: data from 215, more registrations, fewer deregistrations in 216 Basque Country: permits Chart 35: Type B machine gambling premises As for amounts gambled on Type B Machines, comparable data is available for the autonomous regions of Andalusia, Cantabria, Castilla La Mancha, Galicia, Madrid, Navarre and the autonomous city of Ceuta. The total of comparable data shows a positive year-on-year change of 4.3%. Only in order to provide an approximate image of the subsector as a whole, which would reasonably allow a weighting of it in relation to the other subsectors, the estimate of the amounts gambled for autonomous regions and cities whose 216 data is not available is done by applying the 4.3% above to the estimates made in Gambling halls According to data reported by the autonomous regions, at the end of 216 the number of gambling halls would have been 2,471, with the following territorial breakdown: 216 Annual Report Page 71 of 164

73 Gambling in Spain Number of gambling halls in the autonomous regions ANDALUSIA MADRID MURCIA CANARY ISLANDS BASQUE COUNTRY CASTILLA LA MANCHA CATALONIA BALEARIC ISLANDS ARAGON GALICIA CASTILLA-LEÓN EXTREMADURA NAVARRE CANTABRIA LA RIOJA ASTURIAS Source: autonomous regions Chart 36: gambling halls at the close of 216. No data from the Valencia Region, Ceuta and Melilla Bingo The land based forms of traditional bingo (physical card) and electronic (networked electronic card) would have represented 1,94.14 million euros in sales in 216, 3.31% more than in 215, with the weight of traditional bingo 92.2%. of the total. As for traditional bingo, there would have been stability in the estimated number of open rooms at year-end (evolution of.65%) to reach 39 active rooms, compared to the trend found in previous years. 216 Annual Report Page 72 of 164

74 Land based channel 8 Estimated gross gambling revenue in the traditional bingo sector Source: Spanish Confederation of Bingo Hall Owner Organisations. Millions of euros. The source has corrected the data for 215. Chart 37: Gross gambling revenue in the traditional bingo sector 2,1 2, 1,979.7 Estimated sales in the traditional bingo industry 1,9 1,8 1,7 1, , , , , ,6 1,5 1,4 1,3 1, Source: Spanish Confederation of Bingo Hall Owner Organisations. Millions of euros. The source has corrected the data for 215. Chart 38: Estimated sales in the traditional bingo industry 216 Annual Report Page 73 of 164

75 Gambling in Spain By autonomous region, again the weight of land based sales in traditional bingo on the national total is concentrated in Madrid (2.19%), Catalonia (16.41%), Valencia Region (15.12%) and Andalusia (12.32%). 4 Estimated sales by autonomous region MADRID CATALONIA VALENCIA REGION ANDALUSIA CANARY ISLANDS ARAGON BASQUE COUNTRY CASTILLA-LEÓN GALICIA MURCIA BALEARIC ISLANDS EXTREMADURA ASTURIAS CASTILLA LA MANCHA NAVARRE CANTABRIA LA RIOJA CEUTA MELILLA Source: Spanish Confederation of Bingo Hall Owner Organisations. Millions of euros. Chart 39: Estimated sales by autonomous region With regard to electronic bingo, it has been active in Madrid, Valencia Region, Catalonia, Aragon, Castilla-León, Basque Country, Extremadura, Castilla La Mancha and Cantabria. 216 estimated sales for this activity stood at million euros, up by 17.66% on the previous year, with an estimated prize percentage of 85.6% The online channel Regulated online gambling in Spain is structured in three branches: national online gambling, regulated by Law 13/211 and under the control of the Directorate- General for the Regulation of Gambling; online gambling which is developed or can be developed in each autonomous region under their powers and the online gambling of entities authorised for the sale of lottery. 216 Annual Report Page 74 of 164

76 Online channel National online gambling sector General details National online gambling maintains dynamic growth in amounts gambled and gross gambling revenue, while the number of active gamblers and the number of new registered gamblers have also shown positive behaviours. At the end of 216 a total of 51 operators were authorised to offer regulated gambling activities. Prize money amounting to 1,456.6 million euros was paid out in this activity segment, with gross gambling revenue standing at million euros, up by 34.32% on the previous year. The gross gambling revenue equalled 3.94% of the amounts gambled, compared to 215 when it was 3.73% and 3.88% in Annual evolution of gross gambling revenue Source: Directorate-General for the Regulation of Gambling. Millions of euros. For 212 only data from the start of the regulated market (June) is counted. Chart 4: Annual evolution of gross gambling revenue for national online gambling 216 Annual Report Page 75 of 164

77 Gambling in Spain Monthly fluctuations in amounts gambled JUN AUG OCT DEC FEB APR JUN AUG OCT DEC FEB APR JUN AUG OCT DEC FEB APR JUN AUG OCT DEC FEB APR JUN AUG OCT DEC Source: Directorate-General for the Regulation of Gambling. Millions of euros. Chart 41: Monthly evolution of gross gambling revenue for national online gambling Again the dynamics of gross gambling revenue is similar to that of amounts gambled, with a greater importance of Betting (positive year-on-year evolution: 32.49%) and a significant positive evolution in Contests, Casino and Bingo (64.83%, 26% and 17.34%, respectively) and a decline in Poker (-4.33%). Póquer 13.41% Contribution to gross gambling revenue by form of online national gambling Slot machines 12.6% Apuestas 55.49% Concursos 1.61% Casino 15.31% Bingo 2.11% Source: Directorate-General for the Regulation of Gambling. Chart 42: Contribution to gross gambling revenue by form of online national gambling Annual Report Page 76 of 164

78 Online channel Evolution of gross gambling revenue for national online gambling by form of gambling Betting Casino Poker Slot machines Bingo Contests 56,13 275,81 115,4 156,46 1, 131,87 5,69 7,6 3,1 39,75,91, Source: Directorate-General for the Regulation of Gambling. Millions of euros. Base 1= Betting 211. Left axis: betting, casino, poker and slot machines. Right axis: bingo and contests. Chart 43: Evolution of gross gambling revenue for national online gambling by form of gambling Contribution to gross gambling revenue for national online gambling by type of gambling Sport fixed-odds betting 53.71% Online slot machines 12.6% Bingo 2.11% Other Blackjack Poker Tournament Poker Cash 3.4% 7.14% 6.27% 4.4% Roulette 1.9% Source: Directorate-General for the Regulation of Gambling. Other: Sports pool betting, Horse pool betting, Horse fixedodds betting, Betting-exchange, Baccarat, Contests, Additional Games and Other fixed-odds betting. Chart 44: Contribution to gross gambling revenue for national online gambling by type of gambling Annual Report Page 77 of 164

79 Gambling in Spain In 216 the amounts gambled were 1, million euros, a positive evolution of 27.13% compared to the previous year (in 215, 3.44%). The year-on-year evolution of this segment of activity in terms of amounts gambled is similar to that of previous years, with a rebound in the last quarter, where again in 216 the best market results until the date of study were obtained as, in that period, amounts gambled of more than 945 million euros a month were recorded. 1,2 Fluctuations in amounts gambled each month 1, 1, JUN AUG OCT DEC FEB APR JUN AUG OCT DEC FEB APR JUN AUG OCT DEC FEB APR JUN AUG OCT DEC FEB APR JUN AUG OCT DEC Source: Directorate-General for the Regulation of Gambling. Millions of euros. Chart 45: Fluctuations in amounts gambled each month In terms of gross gambling revenue, the importance of Sport Fixed-odds Betting stands out as a whole (53.71% in 216); on the other hand, Sport Fixed-odds Betting, the forms of poker, online slot machines and Roulette combined account for 9.9% of the overall revenue. 216 Annual Report Page 78 of 164

80 Online channel Amounts gambled by form of online national gambling Slot machine 12,23% Betting 46,94% Poker 14,51% Contests,8% Bingo,65% Casino 25,58% Source: Directorate-General for the Regulation of Gambling. Chart 46: Amounts gambled by form of online national gambling 216 During 216 there has been an increase in the amounts gambled in practically all forms, with the exception of Poker. If in 213 Poker represented 4.1% of the amounts gambled, in 216 it has reduced to 14.51%, once again thanks to the year-on-year decrease of the form itself (-11.41%) but also to the increase of betting (22.25%) and the consolidation of slot machines (231.8%). Regarding the amounts gambled, the Bingo segment has evolved positively at 7.83%, the Casino segment at 3.96% and Contests at 48.18%. From the perspective of amounts gambled, the national online gambling market is concentrated in six segments, of which four are especially noteworthy: Sports Fixed-odds Betting, Roulette, Poker Cash and, in 216, Online Slot Machines, representing 85.6% of the amounts gambled in the year between them. Sports Fixed-odds Betting maintains important with 45.9% of the amounts gambled, with a further decline in the relevance of the two forms of poker: Poker tournament and Poker cash. 216 Annual Report Page 79 of 164

81 Gambling in Spain The amounts gambled on Sports Pool Betting (-37.84%), Poker Cash (-13.2%), Poker Tournament (-7.93%), additional games (-28.89%) and Baccarat (-63.19%) decreased in their year-on-year comparison, practically the same types of gambling as the previous year. Seeing an increase in this year-on-year comparison were: Sport Fixed-odds betting (19.98%), Horse Fixed-odds Betting (21.91%), Blackjack (25.5%), Roulette (33.32%), Bingo (7.83%) and Contests (48.18%), with a greater evolution in Online Slot Machines and Pool Betting, possibly due to its recent incorporation to the regulated market and the beginning of its activity in the middle of the year. For its part, the block of Other Fixed-odds Betting has again experienced a very relevant evolution, although the weight within the set is still small. TABLE 24: STRUCTURE OF THE AMOUNTS GAMBLED AND GROSS GAMBLING REVENUE BY SEGMENT Amounts gambled Sport Fixed-odds Betting Roulette Online slot machines Poker Cash Blackjack Poker Tournamet Cross betting Horse fixed-odds betting. Bingo Other fixed-odds betting Contests Baccarat Sports pool betting Additional games 216 4,98,794,57 2,17,56,318 1,331,49,45 1,6,823, ,253, ,875,775 86,627,6 76,87,883 71,248,462 37,927,36 8,346, ,869 89,65 83,227 Gross gambling revenue 216 Sport fixed-odds betting 23,563,35 Online slot machines 51,79,912 Roulette 46,812,256 Poker Tournamet 3,629,344 Poker Cash 26,934,666 Blackjack 18,894,525 Bingo 9,72,18 Contests 6,92,989 Horse fixed-odds betting. 4,171,69 Other fixed-odds betting 2,929,268 Cross betting 53,249 Baccarat 25,136 Sports pool betting 14,124 Additional games 4,341 Source: Directorate-General for the Regulation of Gambling. Euros. 216 Annual Report Page 8 of 164

82 Online channel Amounts gambled by type of gambling. State online gambling Roulette Sport fixed-odds 18.53% Online slot betting machines 45.9% 12.23% Blackjack Betting-exchange.8% Other Poker Tournament 7.4% 1.8% 4.77% Poker cash 9.74% Source: Directorate-General for the Regulation of Gambling. Other: Sports pool betting, Betting-exchange, Horse pool betting, Horse fixed-odds betting, Baccarat, Contests, Additional Games and Other fixed-odds betting. Chart 47: Amounts gambled by type of gambling. National online gambling Data by type of gambling Contests Form of gambling in which its offer, development and resolution is made by means of a communication whenever the gambling activity is connected or subordinate to the main activity and there is an economic outlay by the participant. The gross gambling revenue stood at 6,92,989 euros, which represents 82.7% of the amounts gambled (in 215 it was 74.35%). On the other hand, the amounts gambled in this segment accounted for 8,346,794 euros in 216, an increase over the previous year of 48.18% compared to the decline of the previous two years. 216 Annual Report Page 81 of 164

83 Gambling in Spain The general pattern of this type of gambling can be seen in the following chart, where the seasonal behaviour can also be detected, ever more concentrating its activity in December (18.79% of the amounts gambled in 216). 2,5, 2,, 2,152,531 Contests. Amounts gambled monthly and gross gambling revenue Amounts Gambled Gross gambling revenue 1,748,547 1,5, 1,251,787 1,496,633 1,567,947 1,, 5, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 48: Contests. Amounts gambled monthly and gross gambling revenue Sport fixed-odds betting Sports betting in which participants wager against the gambling operator and win a prize if they guess the prediction made; the amount being obtained by multiplying the wager by the spread previously set by the operator for that forecast. Sport Fixed-odds Betting had a gross gambling revenue of million euros, 32.22% higher than the previous year, resulting in 4.7% of the amounts gambled in 216. In terms of the amounts gambled in 216, the figure was 4,98.79 million euros, a positive evolution compared to the previous year of 19.98%, showing a positive trend, with a gambling structure similar in the most part to the comparison between 216 and the previous two years. 216 Annual Report Page 82 of 164

84 Online channel 35,, Sport fixed-odds betting. Gross gambling revenue per month 3,, 19,3,548 25,, 2,, 15,, 1,, 5,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 49: Sport fixed-odds betting. Gross gambling revenue per month 5,, 45,, Sport fixed-odds betting. Amounts gambled per month 387,786,82 4,, 35,, 3,, 25,, 2,, 15,, 1,, 5,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 5: Sport fixed-odds betting. Amounts gambled per month 216 Annual Report Page 83 of 164

85 Gambling in Spain Horse fixed-odds betting Horse betting in which participants wager against the gambling operator and win a prize if they guess the prediction made; the prize being obtained by multiplying the wager by the spread previously set by the operator for that forecast. In Horse Fixed-odds Betting the gross gambling revenue was 4.17 million euros, 8.65% lower than the previous year, resulting in 5.43% of the amounts gambled in 216. Also, million euros were gambled, a positive evolution compared to the previous year of 21.91% (in 215, compared to 214, it was 78.68%). 9, Horse fixed-odds betting. Gross gambling revenue per month 8, 7, 6, 178,96 5, 4, 3, 2, 1, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 51: Horse fixed-odds betting. Gross gambling revenue per month 216 Annual Report Page 84 of 164

86 Online channel 9,, Horse fixed-odds betting. Amounts gambled per month 8,, 7,691,639 7,, 6,, 5,, 4,, 3,, 2,, 1,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Other fixed-odds betting Chart 52: Horse fixed-odds betting. Amounts gambled per month Betting in which participants wager against the gambling operator and win a prize if they guess the prediction made; the prize being obtained by multiplying the wager by the spread previously set by the operator for that forecast. Bets are placed on the result of one or several events included in the programmes previously set by the operator, or on facts or circumstances related to such events, which the gambling operator will have previously established in the corresponding programme. The other fixed-odds betting segment has evolved positively during 216, with a gross gambling revenue of 2.93 million euros and a greater activity in the business volume to reach million euros in the year, again much higher than the previous year, although we cannot speak of real activity until the month of August Annual Report Page 85 of 164

87 Gambling in Spain Other fixed-odds betting. Gross gambling revenue per month 5, 4, 39,55 3, 2, 1, -1, JUN 212 SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC , Source: Directorate-General for the Regulation of Gambling. Euros. Chart 53: Other fixed-odds betting. Gross gambling revenue per month Other fixed-odds betting. Amounts gambled per month 7,, 6,, 2,96,145 5,, 4,, 3,, 2,, 1,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 54: Other fixed-odds betting. Amounts gambled per month 216 Annual Report Page 86 of 164

88 Online channel Betting-exchange They are the bets resulting from the matching of a bet offer in favour and another bet offer against, both issued by participants, on a certain event and fact. The gambling operator acts only as an intermediary and guarantor of the amounts risked between the participants. Following the approval of Order HAP/1369/214, of 25 July, of the Ministry of Finance and Public Administration, 216 is the second year in which bettingexchange has been marketed in Spain, with gross gambling revenue for the year of 53,249 euros,.61% of the amounts gambled, which amounted to million euros. 2, Betting-exchange. Gross gambling revenue per month 18, 16, 14, 12, 1, 8, 6, 43,148 4, 2, AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 55: Betting-exchange. Gross gambling revenue per month 216 Annual Report Page 87 of 164

89 Gambling in Spain 15,, 14,, 13,, 12,, 11,, 1,, 9,, 8,, 7,, 6,, 5,, 4,, 3,, 2,, 1,, Betting-exchange. Amounts gambled per month AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ,999,47 Source: Directorate-General for the Regulation of Gambling. Euros. Sports Pool Betting Chart 56: Betting-exchange. Amounts gambled per month Sports bet in which a percentage of the sum of the amounts bet, previously established, is distributed among those participants who, in accordance with the prizes programme, were successful in the outcome of the sporting event or the fact or circumstance of the event on which the bets were placed. Sports Pool Betting has gross gambling revenue of 14,124.6 euros, with a further decline in the amounts gambled, from % between 216 and 215, from 143,276.9 euros to 89,65.8 euros, repeating the significant decrease in the months of July of each year. 216 Annual Report Page 88 of 164

90 Online channel 7, Sports Pool Betting. Gross gambling revenue per month 6, 5, 4, 3, 2, 1, 1,87-1, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC , -3, Source: Directorate-General for the Regulation of Gambling. Euros. Chart 57: Sports Pool Betting. Gross gambling revenue per month 7, Sports Pool Betting. Amounts gambled per month 6, 5, 4, 3, 2, 5,262 1, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 58: Sports Pool Betting. Amounts gambled per month 216 Annual Report Page 89 of 164

91 Gambling in Spain Poker cash Poker is a card game in which several players face each other to obtain a winning card combination. This combination is determined by the rules of the game and its operation. The winning hand takes either a part or the total amount of the pot. Poker cash is a form of poker in which the participant can enter or leave the game when they wish, and can cash in the profits obtained in each of the hands in which they have played until the moment of their withdrawal from the game. In the poker cash segment, the gross gambling revenue had a negative evolution ( 11.32%) to reach million euros, representing 2.54% of the amounts gambled in 216. On the other hand, 1,6.82 million euros was gambled during 216, 13.2% less than in the previous year. 2,, Poker cash. Gross gambling revenue per month 18,, 16,, 14,, 12,, 1,, 8,, 6,, 4,, 2,276,34 2,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 59: Poker cash. Gross gambling revenue per month 216 Annual Report Page 9 of 164

92 Online channel 2,, Poker cash. Amounts gambled per month 18,, 16,, 14,, 12,, 1,, 93,1,87 8,, 6,, 4,, 2,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 6: Poker cash. Amounts gambled per month Poker Tournament A form of poker in which the participant is willing to participate in successive tables, competing to face, if not previously abandoning the game, their final opponent or opponents. Participating in the tournament involves paying the corresponding registration and buy-in. The pot will be awarded to the winner or distributed among a pre-established number of finalists. In 216, the poker tournament segment had a positive evolution in gross gambling revenue (2.8%), which amounted to 3.63 million euros, as a result of million euros being gambled, -7.93% less than in Annual Report Page 91 of 164

93 Gambling in Spain 6,, Poker tournament. Gross gambling revenue per month 5,, 4,, 3,3,14 3,, 2,, 1,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 61: Poker tournament. Gross gambling revenue per month 6,, Poker tournament. Amounts gambled per month 5,, 5,4,88 4,, 3,, 2,, 1,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 62: Poker tournament. Amounts gambled per month 216 Annual Report Page 92 of 164

94 Online channel Blackjack Blackjack is a card gambling game in which participants play against the dealer. The object of the game is to reach a final score of 21 points or as high as possible without exceeding 21. In 216, Blackjack again had a positive performance. The gross gambling revenue represented 2.47% of the amounts gambled which means million euros, 22.6% more than last year. In terms of amounts gambled, the figure was million euros, 25.5% more than that recorded in ,, Blackjack. Gross gambling revenue per month 5,, 4,, 3,, 2,683,448 2,, 1,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 63: Blackjack. Gross gambling revenue per month 216 Annual Report Page 93 of 164

95 Gambling in Spain 9,, Blackjack. Amounts gambled per month 8,, 75,88,95 7,, 6,, 5,, 4,, 3,, 2,, 1,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Additional games Chart 64: Blackjack. Amounts gambled per month Types of gambling in which games of a diverse dynamic nature (combining chance with abilities, skills, culture, knowledge, etc.) which are not just played for money but mainly for entertainment. Additional games continue the dynamics already witnessed in previous years: a decreasing trend in gross gambling revenue to reach 4,341 euros, with amounts gambled totalling 83,227 euros. Thus, the gross gambling revenue has fallen by 24.46%, while the amounts gambled have done so by 28.89% in the year-on-year comparison, widening the distance between the largest monthly amount gambled since the opening of the market in this segment (September 212, 213,515 euros) and the lowest monthly amount (November 216: 1,286 euros). 216 Annual Report Page 94 of 164

96 Online channel 29, Additional Games. Gross gambling revenue per month 24, 19, 14, 9, 4, 337-1, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 65 Additional Games. Gross gambling revenue per month 3, Additional Games. Amounts gambled per month 25, 2, 15, 1, 5, 1,712 JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 66: Additional Games. Amounts gambled per month 216 Annual Report Page 95 of 164

97 Gambling in Spain Baccarat Card game played with cards in which several players face off against each other. The operator acts as the players' intermediary and guarantor and charges them a previously set amount or percentage of their bet. The object is to reach a hand of cards with a score of nine points or as close as possible but not higher than nine and at the same time exceeding the banker's hand value. The gross gambling revenue reached 25,136 euros, while the amount accumulated in amounts gambled in 216 was 939,869 euros. The gross gambling revenue was 2.67% of the amounts gambled. 15, Baccarat. Gross gambling revenue 13, 11, 9, 7, 5, 3, 1,98 1, -1, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC , -5, Source: Directorate-General for the Regulation of Gambling. Euros. Chart 67: Baccarat. Gross gambling revenue 216 Annual Report Page 96 of 164

98 Online channel 5, Baccarat. Amounts gambled 45, 4, 35, 3, 25, 2, 15, 1, 5, 43,997 JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 68: Baccarat. Amounts gambled Roulette A game of chance in which players bet against the operator on a particular number, colour or numbered pocket in a wheel image which rotates on its axis. To determine the winning bet, an image of a ball is spun in the opposite direction and players guess where it will land. Gross gambling revenue was million euros, 27.77% higher than 215, representing 2.32% of the amounts gambled, which in 216 reached 2,17.51 million euros, with an increase over the previous year of 33.32%. 216 Annual Report Page 97 of 164

99 Gambling in Spain Roulette. Gross gambling revenue per month 4,99, 4,687,14 3,99, 2,99, 1,99, 99, -1, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 69: Roulette. Gross gambling revenue per month 25,, Roulette. Amounts gambled per month 29,811,625 2,, 15,, 1,, 5,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. 216 Annual Report Page 98 of 164 Chart 7: Roulette. Amounts gambled per month

100 Online channel Bingo Game of chance in which the possibility of winning depends on real or virtual cards on which the game is played and forming any of the numerical combinations which can win a prize and which are obtained through a draw in which all of the numbers in the game are present. Gross gambling revenue stood at 9.7 million euros, representing a 17.34% decline compared to 215. For its part, revenues for this activity stood at million euros, up by 7.83% on the previous year. 3,, Bingo. Gross gambling revenue per month 2,5, 2,, 1,5, 1,, 881,575 5, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 71: Bingo. Gross gambling revenue per month 216 Annual Report Page 99 of 164

101 Gambling in Spain 1,, Bingo. Amounts gambled per month 9,, 8,, 7,, 6,832,332 6,, 5,, 4,, 3,, 2,, 1,, JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 72: Bingo. Amounts gambled per month Slot machines Game in which, in exchange for the price of the game, the user is granted a time of use in order to obtain a combination of signs or graphic representations which, according to the rules of the game, are awarded a prize. In its second year of activity the gross gambling revenue amounted to million euros, while the amount gambled was 1, million euros. 216 Annual Report Page 1 of 164

102 Online channel Slot machines. Gross gambling revenue per month 14,, 12,, 1,, 8,, 6,, 6,323,685 4,, 2,, MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 73: Slot machines. Gross gambling revenue per month 18,, 16,, Slot machines. Amounts gambled per month 161,813,388 14,, 12,, 1,, 8,, 6,, 4,, 2,, MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Source: Directorate-General for the Regulation of Gambling. Euros. Chart 74: Slot machines. Amounts gambled per month 216 Annual Report Page 11 of 164

103 Gambling in Spain Other business variables As for the number of gamblers in this gambling segment, during 216 the average monthly number of active gamblers increased by 41.29% compared to the previous year, closing the year with a monthly average of 611,929 users. On average, for new gamblers registered there was an increase of 43.5% between 216 and 215, with the number of "new registrations" in 216 at 2,54,356, resulting in a cumulative number of new registrations since the market was regulated of 9,13,722. The average monthly amounts gambled per active gambler would have been lower in 216 compared to the previous year, although a clear trend has not yet been detected. The evolution of deposits and funds withdrawn is very similar, upwards in both cases, with a statistically significant positive lineal correlation between the two variables (.9878) since the inception of regulated gambling. 7, 6, 5, Monthly fluctuations in average number of active gamblers Active 611, ,77 4, 3, 283, ,277 2, 1, 132,5 19,72 124, ,244 JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC Source: Directorate-General for the Regulation of Gambling. Chart 75: Monthly fluctuations in average number of active gamblers 216 Annual Report Page 12 of 164

104 Online channel Monthly average amounts gambled per active gambler , , , , January March Mayo July September November Source: Directorate-General for the Regulation of Gambling. Euros. Chart 76: Monthly average amounts gambled per active gambler Fluctuations in deposits and funds withdrawn 12,, 18,271,9 1,, 82,631,422 8,, 58,294,874 7,38,346 46,514,167 6,, 42,159,35 4,146,14 4,, 54,78,753 31,238,769 24,473,54 Deposits 2,, OCT DEC 216 JUN AUG APR FEB OCT DEC 215 JUN AUG FEB APR OCT DEC 214 JUN AUG FEB APR DEC 213 OCT JUN AUG FEB APR OCT DEC 212 AUG JUN 212 Withdrawals Source: Directorate-General for the Regulation of Gambling. Euros. Chart 77: Fluctuations in deposits and funds withdrawn 216 Annual Report Page 13 of 164

105 Gambling in Spain 3 25 Average deposits per active gambler , ,35 161,51 5 January March Mayo July September November Source: Directorate-General for the Regulation of Gambling. Euros. Chart 78: Monthly average deposits per active gambler Promotional expenses Promotional expenses incurred by online gambling operators in this business segment during 216 were million euros, 69.% higher than that corresponding to the previous year. The greatest amount was spent on advertising expenses ( million euros), followed by spending on bonuses (89.9 million euros) and affiliates (19.54 million euros), with sponsorship expenses taking last place (3.58 million euros). As in previous years, the spending periods within the year have not been uniform. In 216, advertising, sponsorship and affiliates increased in relation to the previous year, especially in bonuses and sponsorship 216 Annual Report Page 14 of 164

106 Online channel 12, Promotional expenses by type. Years 213 to , , 8, , , ,757 67,549 6, 37,194 4, 3,565 28,27 13,915 19,543 12,566 2, 11,819 1, ,584 Advertising Vouchers Members Sponsorship Source: Directorate-General for the Regulation of Gambling. Thousands of euros. Chart 79: Promotional expenses by type. Years 213 to 216 Structure of promotion expenses % 5.15% Advertising Vouchers Members Sponsorship 1.58% 8.62% Source: Directorate-General for the Regulation of Gambling. Chart 8: Structure of promotion expenses Annual Report Page 15 of 164

107 Gambling in Spain Monthly expenditure on advertising. Years 213 to , 11, , 1, 8, 6, 4, 2, JAN13 MR13 MY13 JL13 SP13 NV13 EN14 MR14 MY14 JL14 SP14 NV14 EN15 MR15 MY15 JL15 SP15 NV15 EN16 MR16 MY16 JL16 SP16 NV16 Source: Directorate-General for the Regulation of Gambling. Thousands of euros. Chart 81: Monthly expenditure on advertising. Years 213 to , Monthly expenditure on vouchers. Years 213 to 216 1, 8, 6, 4, 6, , JAN13 MR13 MY13 JL13 SP13 NV13 EN14 MR14 MY14 JL14 SP14 NV14 EN15 MR15 MY15 JL15 SP15 NV15 EN16 MR16 MY16 JL16 SP16 NV16 Source: Directorate-General for the Regulation of Gambling. Thousands of euros. Chart 82: Monthly expenditure on vouchers. Years 213 to Annual Report Page 16 of 164

108 Online channel 2,5 Sponsorship Members 2, Monthly expenditure on sponsorship and membership. Years 213 to 216 1,5 1, , JAN13 MR13 MY13 JL13 SP13 NV13 EN14 MR14 MY14 JL14 SP14 NV14 EN15 MR15 MY15 JL15 SP15 NV15 EN16 MR16 MY16 JL16 SP16 NV16 Source: Directorate-General for the Regulation of Gambling. Thousands of euros. Chart 83: Monthly expenditure on sponsorship and membership. Years 213 to National lottery gambling operators in the online channel Sociedad Estatal Loterías y Apuestas del Estado Online gambling operated by Sociedad Estatal Loterías y Apuestas del Estado, with sales of million euros in 216, represented 1.32% of the total gambling sales volume in the year. Its evolution compared to 215 has been positive (16.5%), as has been the gross gambling revenue: 13.49%. This gross gambling revenue (6.4 million euros) represented 59.16% of operator sales in this channel as an average of the last five years. 216 Annual Report Page 17 of 164

109 Gambling in Spain Data of the online channel SELAE Prizes GROSS GAMBLING REVENUE Amounts gambled Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado. Millions of euros. Chart 84: Data of the online channel SELAE Spanish National Organisation for the Blind Online gambling for the National Organisation for the Blind in 216 represented.92% of total sales, with 17.6 million euros. Its growth with respect to the previous year has been again significant (68.57%), with a positive evolution in gross gambling revenue also: 24.5%. This gross gambling revenue (6.22 million euros for 216) represents 39.2% of sales in this channel as an average of the last five years. 216 Annual Report Page 18 of 164

110 Online channel Data of the online channel ONCE Prizes Gross gambling revenue Amounts gambled Source: authors of the report, based on data provided by the Spanish National Organisation for the Blind. Millions of euros. Chart 85: Data of the online channel ONCE Regional online gambling Under their powers, autonomous regions can authorise online gambling within their territory. In 216, data from Catalonia, Castilla La Mancha, Madrid, Murcia, Navarre and the Basque Country showed amounts gambled at 23.9 million euros, with prizes of million euros and gross gambling revenue of million euros. In this year, the weight of this activity at the regional level in terms of amounts gambled has been concentrated in the Basque Country (51.19%) and Madrid (39.43%), with the gross gambling revenue on the amount gambled varying according to each region: Madrid (6.12%), Murcia (1.1%), Navarre (7.98%), Basque Country (8.54%) and Catalonia (3%), although this last figure corresponds to the regional lotteries sold by the online channel, a form of gambling not marketed in the other regions. 216 Annual Report Page 19 of 164

111 Gambling in Spain 1,, 8,877,999 9,, 7,473,344 8,, 6,877,424 7,, Autonomous regions' gross gambling revenue in the online channel ,, 5,, 4,, 3,, 4,953,12 4,899,12 2,, 1,, 1,689, , , ,757 11,27 139, , ,53 151,715 73, BASQUE MADRID LA RIOJA MURCIA NAVARRE CATALONIA CASTILLA LA COUNTRY MANCHA Source: autonomous regions Partial information. Euros. The autonomous region of La Rioja has not reported its online gambling data for 216. Euros. Chart 86: Autonomous regions' gross gambling revenue in the online channel Autonomous regions' amounts gambled in the online channel 14, 12, 1, , ,11 8,85 8, 79,67 79,457 6, 6,574 4, 2, 6,841 4,642 4,382 11,94 2, , BASQUE MADRID LA RIOJA MURCIA NAVARRE CATALONIA CASTILLA LA COUNTRY MANCHA Source: autonomous regions Thousands of euros. The autonomous region of La Rioja has not reported its online gambling data for 216. Chart 87: Autonomous regions' amounts gambled in the online channel 216 Annual Report Page 11 of 164

112 The gambling market by segment 2.3. The gambling market by segment Lotteries The lottery market in Spain, made up of SELAE, ONCE and EAJA, has evolved positively compared to the previous year, with an increase of 1.67%, although the gross gambling revenue has remained practically stable, with a slight year-on-year decrease (-.6%). The weight by operator in the total amounts gambled and the gross gambling has remained stable in the last three years. Fluctuations in the lottery gambling segment 14, SALES GROSS REVENUE 12, 1, 11, , , , ,5.2 1, , 6, 4, , , ,3.33 4, , , 2, Source: the authors of the report, based on data provided by SELAE, ONCE, and for regional lotteries: 214 and 216, Directorate-General of Taxes and Gambling of the Autonomous Community of Catalonia; 215, Gambling and Betting Autonomous Entity of Catalonia. Millions of euros. Chart 88: Fluctuations in the lottery gambling segment 216 Annual Report Page 111 of 164

113 Gambling in Spain Betting The Betting gambling segment considered as such in this section continues with a positive evolution again thanks to the national online forms of gambling, although the positive growth of the amounts gambled is generalised as it would have been given the results of Sociedad Estatal Loterías y Apuestas del Estado (1.79% in the online channel), online betting linked to the Directorate-General for the Regulation of Gambling (22.25% year-on-year change) and the autonomous regions' in person and online channels (32.61% and 37.57%, respectively). In 216, the regional data on bets would have accounted for 1,63.35 million euros in amounts gambled (1, million euros in 215 and million in 214) and 1,34.65 million euros in prizes. Fluctuations in the betting gambling segment 8, 7, AMOUNTS GAMBLED GROSS REVENUE 6, , 5, , 4, 3, , 2, , 1, 1, Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado, regions and cities, and the Directorate-General for the Regulation of Gambling. Millions of euros. Chart 89: Fluctuations in the betting gambling segment 216 Annual Report Page 112 of 164

114 The gambling market by segment Gross gambling revenue by channel Betting IN PERSON 35. REGIONAL ONLINE ONLINE DGOJ ONLINE LAE Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado, regions and cities, and the Directorate-General for the Regulation of Gambling. Millions of euros. Data for regional online gambling and SELAE on the right axis. Chart 9: Gross gambling revenue by channel Betting Amounts gambled by channel Betting IN PERSON 5,11.31 ONLINE DGOJ 5,. REGIONAL ONLINE 9. 4, ONLINE LAE 4,. 7. 2, ,. 5. 2,1.35 2,. 1,9.68 1, , , , Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado, regions and cities, and the Directorate-General for the Regulation of Gambling. Millions of euros. Data for regional online gambling and SELAE on the right axis. Chart 91: Amounts gambled by channel Betting 216 Annual Report Page 113 of 164

115 Gambling in Spain Casino The evolution of the overall Casinos segment as defined in this report is based on a positive behaviour for both online and land based channels, resulting in a combined annual evolution of 2.11% in amounts gambled to 4, million euros. In terms of gross gambling revenue, the positive evolution of the national whole compared to 215 would have been 11.9%. 5, 4,5 4, Fluctuations in the casino gambling segment INCOME GROSS REVENUE 3, , ,5 3, 2, , ,5 2, 1,5 1, , , Source: authors of the report, based on data provided by the Ministry of the Interior, the Madrid Regional Government, and the Directorate-General for the Regulation of Gambling. Millions of euros. Chart 92: Fluctuations in the casino gambling segment 216 Annual Report Page 114 of 164

116 The gambling market by segment Gross gambling revenue by channel Casino 5 IN PERSON ONLINE DGOJ 45 ONLINE AUTONÓMICO Source: authors of the report, based on data provided by the Ministry of the Interior, the Madrid Regional Government, and the Directorate-General for the Regulation of Gambling. Millions of euros. Data for regional online gambling on the right axis. Chart 93: Gross gambling revenue by channel Casino Amounts gambled by channel Casino 3, IN PERSON 2, ,5 ONLINE DGOJ ONLINE AUTONÓMICO 2, , 1,5 1, , , , , , , , Source: authors of the report, based on data provided by the Ministry of the Interior, the Madrid Regional Government, and the Directorate-General for the Regulation of Gambling. Millions of euros. Data for regional online gambling on the right axis. Chart 94: Amounts gambled by channel Casino 216 Annual Report Page 115 of 164

117 Gambling in Spain Bingo The dynamics of Bingo are mainly based on the traditional game (96.39% of the total amounts gambled). As a whole, the amounts gambled would have increased in 216 by 3.46%, reaching 1, million euros, with a gross gambling revenue representing 29.7% of the amounts gambled in the year. 2,5 Fluctuations in the bingo gambling segment INCOME GROSS REVENUE 2, 1, , , , , , ,5 1, Source: authors of the report based on estimates made by the Spanish Confederation of Bingo Hall Owner Organisations and data provided by the Directorate-General for the Regulation of Gambling. Millions of euros. The private source has modified the data offered for 215. Chart 95: Fluctuations in the bingo gambling segment 216 Annual Report Page 116 of 164

118 The gambling market by segment Gross revenue by channel. Bingo 1, 25 9 IN PERSON ONLINE Source: authors of the report based on estimates made by the Spanish Confederation of Bingo Hall Owner Organisations and data provided by the Directorate-General for the Regulation of Gambling. Millions of euros. Data for online gambling on the right axis. Chart 96: Gross revenue by channel. Bingo Amounts gambled by channel Bingo 3, 2 2,5 IN PERSON ONLINE , 1,5 1, ,86.9 1, , , , Source: authors of the report based on estimates made by the Spanish Confederation of Bingo Hall Owner Organisations and data provided by the Directorate-General for the Regulation of Gambling. Millions of euros. Data for regional online gambling on the right axis. Chart 97: Amounts gambled by channel Bingo 216 Annual Report Page 117 of 164

119 Gambling in Spain 2.4. The gambling market by lottery operator In general, gross gambling revenue has remained stable during 216, with different increases in the volume of sales according to each operator Sociedad Estatal Loterías y Apuestas del Estado In 216, Sociedad Estatal Loterías y Apuestas del Estado registered sales for all forms of gambling of 8,88.8 million euros, a figure.33% higher than the previous year (in 213 the negative year-on-year change was -7.93%, while in 215 it was 3.95%). Gross gambling revenue amounted to 3,27.61 million euros in 216, compared to 3,287.1 million euros recorded in 215, representing a -.5% drop. Gambling business performance 12, 1, Prizes Gross gambling revenue Amounts gambled 8,88.8 8, 6, 4, 2, Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado. Millions of euros. Chart 98: Gambling business performance SELAE 216 Annual Report Page 118 of 164

120 The gambling market by lottery operator In 216, the National Lottery achieved sales of 4, million euros, an evolution of 2.72% compared to 215. In the Primitiva Lottery and similar lotteries, sales were 3, million euros (-1.95% compared to 215). Sports Betting accounted for million euros in sales, 11.23% less than in the previous year. Finally, in Betting on Horse-Racing Events, sales were 4.47 million euros,.63% less than in 215. By autonomous regions, the usual land based sales structure is maintained, with a larger volume on the total in Andalusia (14.96%), Madrid (14.75%) and Catalonia (14.28%), and within an overall upward trend, the highest increases in year-on-year sales would have been recorded in Andalusia (2.53%), Castilla La Mancha (1.77%) and Murcia (1.37%). Sales volume by autonomous region 1,6 1,4 1,31 1,282 1,241 1,2 1,28 1, ASTURIAS ARAGON MURCIA CANARY ISLANDS CASTILLA LA MANCHA BASQUE COUNTRY GALICIA CASTILLA-LEÓN VALENCIA R. CATALONIA MADRID ANDALUSIA MELILLA 272 CEUTA 368 LA RIOJA 394 NAVARRE 4 CANTABRIA 466 BALEA RIC ISLANDS 57 EXTREM ADURA 6 Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado. Millions of euros. Chart 99: Sales volume by autonomous region The number of Sociedad Estatal Loterías y Apuestas del Estado points of sale has remained somewhat stable in the last five years. On average, in this period, the additional network comprised 6.73% of points of sale and the basic network accounted for the other 39.27%. 216 Annual Report Page 119 of 164

121 Gambling in Spain In 216, the average annual gross gambling revenue per sales outlet stood at 296, euros, down by 4.26% from the previous year. 11,5 11, Number of points of sale 11,227 1,5 1, 9,5 9, 8,5 8, Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado. Chart 1: Number of points of sale 39, 37, 35, 33, 31, 29, 27, 25, 23, 21, 19, 17, 15, Average annual gross gambling revenue per sales outlet 296, Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado. Euros. Base: average number of outlets in the year. Chart 11: Average annual gross gambling revenue per sales outlet 216 Annual Report Page 12 of 164

122 The gambling market by lottery operator 12, SELAE. Amounts gambled by channel 25 1, 2 8, 15 6, 4, 1 2, In person Online Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado. Millions of euros. Evolution of the online channel on the right axis. Chart 12: Amounts gambled by channel 5, SELAE. Gross gambling revenue by channel 4,5 18 4, 3,5 13 3, 2,5 2, 8 1,5 1, 5 In person Online Source: authors of the report, based on data provided by Sociedad Estatal Loterías y Apuestas del Estado. Millions of euros. Evolution of the online channel on the right axis. Chart 13: Gross gambling revenue by channel 216 Annual Report Page 121 of 164

123 Gambling in Spain Spanish National Organisation for the Blind In 216 sales from gambling obtained by the Spanish National Organisation for the Blind amounted to 1,918.8 million euros 1, increasing 6.25% with respect to the previous year. Gross gambling revenue stood at million euros, representing a.68% increase compared to the million euros posted in 215. Gambling business performance 2,75 2,5 2,25 2, 1,75 1,5 1,25 1, Prizes Gross gambling revenue Amounts gambled 1, Source: authors of the report, based on data provided by the Spanish National Organisation for the Blind. Millions of euros. Chart 14: Gambling business performance ONCE In terms of amounts gambled per autonomous region through this operator, 52.89% of the sales are distributed among the first three in sales volume (Andalusia, Catalonia and the Valencia Region) and 76.93% among the seven first (together with the previous ones: Madrid, Canary Islands, Galicia and Murcia), all stable in distribution compared to ONCE's total revenue in 216 must also include.126 million euros in commissions obtained from sales of the Spanish Red Cross lottery. 216 Annual Report Page 122 of 164

124 The gambling market by lottery operator Sales volume by autonomous region. Year ANDALUSIA CATALONIA VALENCIA R. MADRID CANARY ISLANDS GALICIA MURCIA CASTILL A LA MANCHA CASTILLA-LEÓN BALEARIC ISLANDS EXTREMADURA BASQUE COUNTRY ASTURIAS ARAGON CANTABRIA NAVARRE LA RIOJA MELILLA CEUTA Source: authors of the report, based on data provided by the Spanish National Organisation for the Blind. Millions of euros. Chart 15: Sales volume by autonomous region. Year 216 The average number of sales agents for the Spanish National Organisation for the Blind has remained somewhat stable over the last 5 years, with a decline at the end of 216 of 3.65% compared to the same period in 21. Average number of points of sale per channel 25, 2, 2,54 SELLERS ADDITIONAL 2,73 19,818 19,84 19,782 19,892 19,791 15, 12,536 1, 9,84 1,18 7,639 7,39 5, Source: authors of the report, based on data provided by the Spanish National Organisation for the Blind. The source did not provide the complimentary channel data for 216. Chart 16: Average number of points of sale per channel 216 Annual Report Page 123 of 164

125 Gambling in Spain Gambling and Betting Autonomous Entity of Catalonia Under its powers on gambling, the Autonomous Region of Catalonia can offer lottery games within its territory. In 216 the amounts gambled and gross gambling revenue have evolved positively by.83% and.33% respectively. Sales mainly accumulate in one product (72.16%), with the second accounting for 1.31%. Gambling business performance 25 2 Prizes Gross gambling revenue Amounts gambled Source: author's own with data from the Directorate-General for Taxes and Gambling of the Regional Government of Catalonia and the Lotteries and Betting Autonomous Entity of Catalonia. Millions of euros. Chart 17: EAJA gambling business evolution 216 Annual Report Page 124 of 164

126 Methodological note 3. METHODOLOGICAL NOTE AND APPENDICES 3.1. Methodological note As part of the continuous process to improve the quality and consistency of information, the Directorate-General for the Regulation of Gambling conducts various procedures to contrast and adjust gambling data in order to provide better knowledge of the gambling market. Such procedures may lead to data reflecting inconsistencies with those contained in previous reports. Furthermore, certain gambling activity segments may include changes to prize money depending on the date on which information was provided in this respect, since they may be subject to dispute between participants and operators, with the result being that their actual amount may not be known until they are paid out. Finally, from the different data sources historical data can be corrected according to the same principles here stated for the Directorate-General for the Regulation of Gambling. Concepts The concepts used in the preparation of this report are the following: Type B machines: under Article 5 of Royal Decree 211/1998, of 2 October, enacting Regulations on Amusement and Gambling Machines, type B machines are those which, in return for the game price, grant users a period of use or play and, possibly, according to the game program, a cash prize. Type C machines: under Article 9 of Royal Decree 211/1998, of 2 October, enacting Regulations on Amusement and Gambling Machines, type C 216 Annual Report Page 125 of 164

127 Methodological note and Appendices machines are those which, in return for a set amount gambled, grant users a period of use or play and, possibly, a cash prize which will always depend on chance. Drop: in the Casino segment, the net amount paid by users for casino chips. These chips may be used several times during the same session. Gross gambling revenue: difference between amounts gambled and prize money awarded. In some gambling activity segments there are tax measures which modify this amount. This element and its components may recur expressed by a different amount depending on the gambling segment in which they appear and the other concepts considered. In online gambling and in various land based segments the term Gross Gambling Revenue (GGR) is normally used. In Casino and Bingo the term Win is also used. In Lotteries the concept of amounts gambled refers to sales. Active gamblers: In national online gambling, this is the average number of active users during the period. Any one user may be active through more than one operator during the period. New gamblers registered: In national online gambling, this is the user registrations during the period. Any one user may register through more than one operator during the period. Deposits: In national online gambling, the total amounts of new deposits made by participants in their gambling accounts during the period. Withdrawals: In national online gambling, the total amount of funds withdrawn by participants during the period. Source of data used Lotteries: Sociedad Estatal Loterías y Apuestas del Estado. Spanish National Organisation for the Blind. Autonomous Region of Catalonia. Betting: Sociedad Estatal Loterías y Apuestas del Estado. The governments of the autonomous regions and cities. Casinos: Ministry of the Interior. Directorate-General of the Police. Gambling control service Type B Machines: The governments of the autonomous regions and cities. 216 Annual Report Page 126 of 164

128 Methodological note Bingos: Spanish Confederation of Bingo Hall Owner Organisations. National online gambling: Directorate-General for the Regulation of Gambling and Gambling Operators. Data of other regional gambling: The governments of the autonomous regions and cities. Methodological criteria The Spanish gambling market is a heterogeneous industry in terms of activity, channels, operators and information sources. For now, the lack of validated statistical data hinders a comprehensive assessment of the market, meaning that estimates on certain parameters must be resorted to. The main methodological criteria used in the preparation of this report are the following: The average number of outlets of Sociedad Estatal Loterías y Apuestas del Estado used for the purposes of calculation was determined by means of linear interpolation of those existing at the beginning and end of the period studied. The data relating to the gambling sales recorded by the Spanish National Organisation for the Blind are presented net of the commission obtained through the sale of lottery products administered by other organisations, since they represent income earned by the operator via mediation rather than generated from its own gambling activities. The ONCE provides data of average sellers in the period, although this time it has not provided that of sales outlets. Regarding land based casinos, the term "scheduled day of activity" is used, which refers to the total number of days of the year on which the premises could have theoretical activity due to it being operational, taking into account, where appropriate, the opening and closing dates of the premises. Where data are not available, the 15 th of the month is taken as the reference date in terms of the closing or opening of premises. In order to estimate the amounts gambled in land based casinos, the corresponding gross gambling revenue data provided were used and it is considered that winnings represented 8% of amounts gambled in all of the autonomous regions, except for Aragon, where the figure was 7%. 216 Annual Report Page 127 of 164

129 Methodological note and Appendices The variable "Total net income" was taken to be the total gross gambling revenue (including that corresponding to tables and type C machines) plus revenue from admission fees and tips. The information available refers to casinos and rooms with casino games. For Type B machines, estimates were made as to the data not provided solely for the purpose of presenting an overview of the gambling market which will allow the weights of the various subsectors to be reasonably weighted. In amounts gambled, an increase of 4.3% compared to the previous year is estimated, taking only data from Andalusia, Cantabria, Castilla La Mancha, Galicia, Madrid, Navarre and Ceuta into account. In order to calculate winnings not reported by the autonomous region, a minimum amount of 7% of amounts gambled was used, except in the cases of the Canary Islands, Ceuta and Melilla, where 75% was applied when appropriate. In the case of the land based bingo segment the data relating to estimated sales provided by operators from the industry were used. The number of premises included relates to the halls open operating at year-end, which may differ from that corresponding to the number of licensed halls. Other revenue from services possibly related in some way to gambling activities: sales commission, sale of food and drink, etc. 216 Annual Report Page 128 of 164

130 Methodological note In national online gambling, where appropriate, the various types of gambling are grouped according to the following criteria. Betting Sport fixed-odds betting Sports Pool Betting Horse fixed-odds betting Horse Pool Betting Other fixed-odds betting Betting-exchange Bingo Casino Bingo Blackjack Additional games Baccarat Roulette Slot machines Contest Poker Slot machines Contests Poker Cash Poker Tournament 216 Annual Report Page 129 of 164

131 Operators with general licence 3.2. Operators with a general licence for national online gambling forms. Year Spain, Plc Banegras Unión, SA Beatya Online Entertainment PLC Betfair International, PLC Betway Spain, PLC Bingosoft, SAU Bluesblock, SA Casino Barcelona Interactivo, SA Cirsa Digital, SAU Codere Online, SAU Comar Inversiones, SA Digital Distribución Management Ibérica, SA Ebingo Online España, SA Ekasa Apuestas Online Electraworks España, PLC Esgaming, SAU Euroapuestas Online SAU Eurobet International SPA Eurobox S.A. Eurojuego Star, SA Gamesys Spain, PLC Giga Game Online, SA Golden Park Games, SA Gtech Spain, SA Hillside España Leisure, SA Hillside Spain New Media, PLC Interwetten España, PLC JS215 Games, SAU Juego Online, EAD Kambi Spain, PLC Luckia Games, SA Mediaplay Solutions SA Merkur Interactive Malta PLC NetENt Gaming Solutions PLC Paf-Consulting, ABP Plataforma de Apuestas Cruzadas, S.A. Première Megaplex, SA Prima Networks Spain, PLC Pt Entretenimiento Online, EAD Rank Malta Operations, PLC Reel Spain, PLC Rfranco Digital, SAU SKS365 España PLC Sociedad Estatal Loterías y Apuestas del Estado,S.M.E., SA Suertia Interactiva, SA Tele Apostuak, SA Tómbola International, PLC Unidad Editorial Juegos, SA Ventura24games, SA Vive La Suerte, SA Whg Spain, PLC Fuente: DGOJ. Página web. Datos a In 217 the transfer of the licence for contests from Premiere Megaplex S.A. to Concursos Multiplataformas S.A.U. was authorised. 216 Annual Report Page 13 of 164

132 Appendices 3.3. Appendices Sociedad Estatal Loterías y Apuestas del Estado TOTAL Euros Land based Channel Total ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA Castilla La Mancha CASTILLA-LEÓN CATALONIA EXTREMADURA GALICIA MADRID MURCIA NAVARRE BASQUE COUNTRY LA RIOJA VALENCIA REGION CEUTA MELILLA Online Channel Total 212 5,15,722,11 5,15,722,11 649,257,85 176,388, ,291,658 75,439, ,174,479 65,212, ,343,966 4,825, ,185,898 86,846, ,424, ,652,38 181,225,67 6,131, ,121,9 42,276, ,528,53 2,282,376 2,114, ,661,218,365 4,661,218, ,561,37 167,162, ,486,164 69,826, ,753,956 61,318, ,3, ,288, ,924,646 8,29, ,97,33 733,411,39 164,844,392 56,174, ,553,397 39,655, ,538,417 2,32,415 1,983,142 NATIONAL LOTTERY Amounts gambled Prizes % Var ,651,63,442 4,844,548,187 4,976,231, % 3,321,21,856 3,91,539,275 3,582,566,625 4,651,63,442 4,841,489,836 4,967,392,39 2.6% 3,321,21,856 3,91,539,275 3,582,566, ,437, ,767, ,829,13 6.6% 43,283, ,827,48 447,42,39 167,69, ,336, ,4, % 12,59, ,13,913 94,418, ,42, ,818, ,567, % 9,886,648 95,975,488 67,632,31 7,966,747 75,459,577 8,4, % 41,957,412 37,855,356 41,365,35 154,457, ,39,686 17,565, % 87,372, ,734,947 87,622,229 62,64,814 65,53,95 67,325, % 33,5,161 49,495,12 31,241, ,511, ,742, ,944, % 141,552, ,684, ,787, ,411,254 39,6,56 397,587, % 456,576, ,264,736 21,456,71 652,86, ,89, ,754, % 42,79,17 337,194,381 52,81,71 8,216,327 85,63,572 87,119, % 43,471,334 43,23,4 47,22, ,411, ,568,341 25,784, % 169,14, ,785, ,71,266 73,521, ,416,61 76,15, % 655,619,58 481,239,89 948,18,813 16,835, ,121, ,544, % 15,338,436 87,38, ,893,636 56,893,511 58,996,942 6,561, % 27,555,795 35,62,458 28,87, ,28, ,24, ,15,98.74% 161,79,44 38,44, ,727,955 39,395,51 4,722,146 41,5,9.7% 21,14,9 18,664,741 26,41,24 69,94,314 62,77,59 633,1, % 374,515, ,833, ,673,322 2,324,355 2,334,558 2,321, % 2,157,541 1,195,216 1,149,678 1,98,943 1,959,634 2,32, % 1,16,861 93,68 965,529 3,58,351 8,839, % 215 3,323,67,192 3,321,665, ,534,731 13,36,17 74,352,121 35,879,766 81,8,62 32,586, ,223, ,24,394 38,454,951 53,795, ,93,56 472,271,121 91,345,661 36,694, ,135,63 19,336, ,555,76 929,53 85,68 1,941, % Var ,583,74, % 3,577,455, % 316,27, % 129,816, % 14,179, % 259,397, % 51,859, % 36,42,1 1.6% 329,5, % 381,498, % 1,158,336, % 8,698, % 222,86, % 96,793, % 9,744, % 78,925, % 113,111, % 64,394, % 231,51, % 1,11, % 1,52, % 6,248, % 216 Annual Report Page 131 of 164

133 Methodological note and Appendices TOTAL Euros Land based Channel Total ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA Castilla La Mancha CASTILLA-LEÓN CATALONIA EXTREMADURA GALICIA MADRID MURCIA NAVARRE BASQUE COUNTRY LA RIOJA VALENCIA REGION CEUTA MELILLA Online Channel Total 212 3,858,254,5 3,788,252,8 592,697,456 94,756,986 16,624,567 92,523,592 22,279,672 52,15,3 152,77, ,99, ,532,55 9,142, ,937,51 544,491,86 11,454,775 43,676,626 21,271,381 27,353, ,74,212 6,52,91 6,11,624 7,1, ,544,993,88 3,473,583,27 546,3,326 88,3,62 99,26,45 84,416, ,132,195 49,22,53 14,146, ,23, ,669,997 82,652, ,273,83 496,544,487 94,41,536 41,622, ,973,314 25,317, ,532,771 5,895,263 5,395,71 71,49,881 PRIMITIVA LOTTERY AND OTHER SIMILAR LOTTERIES Amounts gambled Prizes % Var ,517,27,75 3,651,88,63 3,579,914, % 1,948,478,378 1,577,892,92 2,5,468,242 3,441,39,943 3,561,421,784 3,479,725, % 1,921,584,562 1,553,725,975 1,966,161,19 546,36,97 575,43, ,28, % 282,593,85 34,684,511 26,64,17 86,436,681 88,368,7 86,451, % 4,635,192 24,618,824 46,532,18 98,597,332 11,464,46 99,957, % 49,387,588 42,42,14 4,777,994 84,119,569 87,662,619 86,556, % 39,21,471 25,736,496 32,276, ,122,55 191,41, ,589, % 126,75,732 69,671, ,489,423 48,469,84 5,81,875 5,5, % 23,773,488 14,592,849 17,895,93 137,88,64 142,682,22 14,1, % 6,59,497 72,71,778 57,41, ,3, ,728,51 234,969, % 12,29,99 71,268,257 92,493,59 482,616, ,956,13 487,12, % 361,689,34 262,695, ,485,259 8,813,388 84,215,784 82,466,45-2.8% 8,751,67 24,232,945 37,747, ,44, ,418, ,438, % 15,366, ,91, ,899, ,345,95 5,927, ,61, % 234,76,3 183,687, ,441,35 93,439,517 95,326,239 93,68, % 49,137,592 26,984,56 38,591,419 41,187,616 42,757,983 41,571, % 19,219,86 44,49,798 16,583, ,751, ,611,4 184,181, % 79,513, ,346,324 89,74,86 24,84,613 25,52,214 24,11, % 1,547,454 7,512,615 8,73, ,17, ,729, ,612, % 188,95, ,5, ,291,449 5,716,971 5,885,261 5,575, % 2,255,739 1,523,795 1,878,737 5,231,93 5,36,694 5,76, % 1,978,537 1,423,982 1,948,219 76,23,763 89,666,279 1,188, % 26,893,816 24,166,117 39,37, % Var ,814,659, % 1,768,919, % 98,541, % 56,11, % 32,6, % 163,447, % 37,798, % 18,762, % 21,159, % 355,795, % 31,723, % 78,829, % 89,422, % 37,137, % 14,747, % 53,92, % 45,95, % 36,983, % 131,115, % 4,228, % 1,662, % 45,739, % 216 Annual Report Page 132 of 164

134 Appendices TOTAL Euros Land based Channel Total ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA Castilla La Mancha CASTILLA-LEÓN CATALONIA EXTREMADURA GALICIA MADRID MURCIA NAVARRE BASQUE COUNTRY LA RIOJA VALENCIA REGION CEUTA MELILLA Online Channel Total ,567, ,662,86 5,713,36 9,294,853 7,394,769 8,611,929 17,214,844 4,197,623 15,235,888 22,383,81 75,414,257 7,635,97 2,94,44 59,44,75 1,13,617 4,151,269 15,13,27 2,185,544 32,896,884 1,997,78 1,168,61 5,95, ,23,22 3,934,46 43,251,328 7,574,685 6,216,179 7,81,72 14,57,676 3,234,597 12,587,812 18,829,992 62,665,143 6,21,19 16,316,363 47,51,563 8,17,16 3,499,22 12,819,718 1,841,367 25,56,673 1,73,341 1,119,917 5,88,743 Amounts gambled ,36, ,575, ,114, ,12,626 38,16,716 39,824,672 6,48,765 6,363,955 5,759,491 5,897,141 7,42,947 8,26,851 12,913,76 14,89,313 2,879,717 2,942,625 1,919,848 1,965,515 16,783,195 17,233,393 58,441,71 61,397,64 5,74,56 6,189,66 14,7,672 13,926,227 4,667,442 4,922,485 6,585,778 6,169,251 3,13,695 3,66,123 11,442,66 11,48,627 1,616,577 1,52,4 2,968,172 2,97,42 1,424,955 1,33, , ,857 5,191,65 6,473,327 BETS ON SPORTING EVENTS 216 % Var ,182, % 23,752, ,811, % 199,945,658 37,29,2-6.57% 23,771,741 5,634, % 1,236,21 5,312, % 3,62,185 6,5, % 4,328,851 11,949, % 8,,949 2,68, % 2,419, 9,35, % 6,784,35 14,815, % 12,389,564 55,99, % 46,56,991 4,913, % 4,46,44 11,773, % 9,86,67 36,723, % 34,565,952 5,128, % 4,957,9 2,732, % 2,274,29 1,356, % 8,9,428 1,312, % 794,571 17,889, % 15,614,66 1,93, % 1,78, , % 65,19 6,37, % 3,86, ,11, ,813,932 22,43,68 5,767,73 2,76,563 4,353,36 9,351,53 1,748,68 5,17,637 8,56,29 39,71,235 2,658,249 7,527,995 23,34,26 3,123,14 2,297,798 8,132,88 88,51 12,98,669 77,46 475,217 2,197,216 Prizes ,17, ,536,68 2,358,972 2,375,68 2,14,51 4,86,691 6,726, ,79 5,47,855 7,164,674 3,586,21 2,75,186 7,755,46 25,244,977 5,16,362 1,579,17 8,425,71 684,456 12,84,136 74, ,217 2,571, % Var ,534, ,133, % 152,589, ,832, % 2,48,92 9,616, % 2,9,673 4,694, % 2,394,324 36, % 5,448,42 25,942, % 8,511,758 2,124, % 2,263,23 1,883, % 4,535,77 6,741, % 7,324,532 16,942, % 37,47,175 3,843, % 5,334,941 4,2, % 7,914,78 13,499, % 24,25,7 2,33, % 2,474, , % 1,189,173 2,531, % 7,15,856 3,936, % 52,46 1,967, % 11,742,816 5,428, % 446, , % 371, , % 4,944,799 3,3, % 216 Annual Report Page 133 of 164

135 Methodological note and Appendices TOTAL Euros Land based Channel Total ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA Castilla La Mancha CASTILLA-LEÓN CATALONIA EXTREMADURA GALICIA MADRID MURCIA NAVARRE BASQUE COUNTRY LA RIOJA VALENCIA REGION CEUTA MELILLA Online Channel Total 212 8,393,661 7,88, ,57 151, , , , , , , , ,34 56,25 1,967, ,644 83, ,418 51, ,457 14,615 8, , ,689,851 6,145,992 86,321 13,43 161,726 13, ,38 137, , , ,27 127, ,381 1,321, ,81 69, ,7 45, ,17 11,8 7,35 543,859 BETS ON HORSE-RACING EVENTS Amounts gambled Prizes % Var ,94,565 4,51,63 4,473,3 -.63% 2,999,292 4,461,69 3,511,356 5,366,144 4,144,81 3,891, % 2,795,72 4,244,514 3,296, , ,739 54, % 275,653 24, , ,591 71,9 95, % 36,15 2,234,782 1,397, ,238 87,337 98, % 55,69 4,82 31,839 96,523 72,67 72,674.84% 34,76 28,22 3, , ,65 327, % 195, , ,876 93,3 66,47 116, % 32,144 71,44 39, , , , % 116,283 83,38 87, ,66 214, , % 137, ,866 99,78 463, , , % 187,32 184, , ,164 69,51 8, % 45,878 69,43 49, ,874 26, , % 212, ,54 117,585 1,271,76 1,564, , % 1,64, , , ,379 73,254 86, % 43,229 37,414 9,319 62,598 36,186 39, % 21,436 98,38 29,656 22, ,2 145, % 91,733 65,687 61,39 36,346 21,499 25, % 12,525 9,545 15, , , , % 228, , ,66 11,435 6,249 6, % 3,146 2,977 2,497 3,547 3,2 3, % 2,215 4,214 1,36 574, , , % 23, ,95 215, ,95,182 5,956,41 121,24 18,452 28,371 23,955 86,382 44,884 39, , ,687 18,83 58,898 5,65,361 24,8 9,592 34,728 4,652 12,399 3,23 1, , % Var ,696, % 2,45, % 99, % 37, % 11, % 8, % 29, % 15, % 83, % 264, % 1,485, % 27, % 59, % 23, % 14, % 24, % 26, % 44, % 74, % 1, % % 29, % 216 Annual Report Page 134 of 164

136 Appendices 212 ANDALUSIA 77 ARAGON 116 ASTURIAS 112 BALEARIC ISLANDS 76 CANARY ISLANDS 152 CANTABRIA 56 Castilla La Mancha 165 CASTILLA-LEÓN 24 CATALONIA 666 EXTREMADURA 9 GALICIA 248 MADRID 63 MURCIA 134 NAVARRE 43 BASQUE COUNTRY 232 LA RIOJA 21 VALENCIA REGION 453 CEUTA 3 MELILLA Basic Network NUMBER OF ESTABLISHMENTS , Additional Network , Annual Report Page 135 of 164

137 Methodological note and Appendices Spanish National Organisation for the Blind TOTAL Thousands of Euros Land based Channel Total ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA EXTREMADURA GALICIA MADRID MURCIA NAVARRE BASQUE COUNTRY LA RIOJA VALENCIA REGION CEUTA MELILLA Online Channel Total 212 1,529,16 1,527,596 42,165 27,939 42,982 46,718 88,155 16,98 51,95 55,72 223,844 39,592 54, ,577 61,62 14,561 47,983 8,56 192,94 1, ,459,743 1,457,841 46,979 27,658 39,892 43,872 82,742 15,468 49,78 52,493 29,398 38,537 52, ,132 57,66 14,129 45,486 8, ,393 1,92 CUPÓN LOTTERY FORM OF GAMBLING Amounts gambled Prizes % Var ,43,715 1,379,658 1,371, % 676,598 73,23 68,69 1,399,861 1,374,542 1,365, % 675, ,876 66,66 392, , ,959.1% 214, , ,363 26,621 26,45 25, % 8,83 19,794 9,87 39,625 37,953 37, % 14,896 25,845 22,342 42,255 41,446 4, % 21,861 12,951 14,297 8,934 79,126 8, % 32,3 37,59 25,833 14,872 14,489 14, % 7,24 8,185 4,67 47,394 45,913 44, % 2,79 17,632 14,911 5,936 5,457 5, % 31,18 33,98 2, ,64 189, , % 13, ,834 16,956 37,274 38,7 37, % 16,453 24,747 11,526 51,732 51,314 5, % 18,728 17,896 18,787 12,71 117, , % 63,951 66,457 51,26 54,147 53,429 52,894-1.% 26,219 65, 36,538 13,885 13,28 12, % 14,65 5,15 4,28 44,5 41,352 39,7-4.% 15,32 14,948 25,73 8,51 7,811 7, % 3,517 2,288 2, ,62 167,79 165, % 63,97 71,246 57,647 1,736 1,742 1, % 851 2,737 2,621 2, % 1,479 3,854 5,116 5, % 727 1,147 2, % Var , , % 626, , % 22, , % 9,61 1,12 5.4% 17,853 24, % 21,232 15, % 38,383 37, % 3,832 15, % 13,343 15, % 21,832 14, % 95,661 87, % 9,994 11, % 19,495 19, % 59,213 65, % 27,161 32, % 5,43 2, % 14,52 13,794-5.% 1,371 3, % 63, , % % 1,334 1, % 2,523 3, % 216 Annual Report Page 136 of 164

138 Appendices TOTAL Thousands of Euros Land based Channel Total ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA EXTREMADURA GALICIA MADRID MURCIA NAVARRE BASQUE COUNTRY LA RIOJA VALENCIA REGION CEUTA MELILLA Online Channel Total ,762 83,976 19,118 2,132 2,25 3,186 5,427 1,26 4,79 3,892 9,88 2,419 4,66 9,25 2, , , ,958 95,64 22,975 2,334 2,391 3,75 5,98 1,178 4,169 3,93 11,138 2,789 5,21 9,834 3, , , ACTIVE GAMBLING FORM OF GAMBLING Amounts gambled Prizes % Var ,12 19, , % 48,543 49,775 51,54 95,514 16,972 14, % 47,91 49,41 5,43 22,963 26,91 36, % 9,469 11,179 23,665 2,159 2,224 2, % 881 1, ,424 2,6 3, % 1,93 1, ,74 4,249 5, % 1,48 1,791 1,143 6,459 7,524 1, % 3,436 3,491 2,995 1,153 1,234 1, % ,255 4,62 5, % 1,851 2,179 1,38 3,971 4,217 5, % 1,681 1,918 1,224 11,19 12,9 15, % 1,197 6,278 3,528 2,716 3,13 4, % 1,188 1,444 1,15 5,31 5,878 7, % 2,152 2,442 2,77 9,771 11,74 14, % 4,88 5,325 3,554 3,43 3,945 5, % 1,521 2,3 1, , % ,62 3,222 3, % 1,356 1,669 1, % ,194 12,16 15, % 5,644 5,65 3, % % 175 1,588 2,51 4, % , % Var ,699 75, % 55,667 72,7 3.6% 6,65 18, % 456 1, % 62 1, % 867 2, % 2,114 5, % % 1,18 3, % 1,666 2,4 44.4% 31,431 1, % 1,14 2, % 1,232 3, % 2,826 6, % 1,16 3, % % 671 1, % % 3,188 7, % % % 1,32 2, % 216 Annual Report Page 137 of 164

139 Methodological note and Appendices TOTAL Thousands of Euros Land based Channel Total ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA EXTREMADURA GALICIA MADRID MURCIA NAVARRE BASQUE COUNTRY LA RIOJA VALENCIA REGION CEUTA MELILLA Online Channel Total , ,43 67,131 7,134 7,497 9,229 21,473 3,197 13,394 11,328 38,185 8,37 15,868 34,139 12,711 2,955 8,35 1,919 36, ,916 28,397 64,892 7,162 7,15 8,572 21,25 2,941 11,993 1,46 34,434 8,546 15,13 31,49 11,76 2,696 7,192 1,78 34, INSTANT LOTTERY FORM OF GAMBLING Amounts gambled Prizes % Var ,12 316,169 42, % 171,4 161, , ,64 313, , % 17,675 16, ,19 62,722 79,472 13, % 38,54 37,17 36,329 6,439 6,929 7, % 4,62 3,792 3,258 6,612 7,346 8, % 4,175 4,197 3,657 8,136 9,51 11, % 4,85 4,42 4,22 2,522 26,512 35, % 13,21 12,98 13,326 2,565 2,974 3, % 1,71 1,679 1,379 11,494 13,393 16, % 7,15 6,535 6,313 9,152 1,625 13, % 5,953 5,277 4,892 31,158 36,663 44, % 22,896 2,171 18,776 8,335 1,61 13, % 4,654 5,4 4,711 14,198 17,249 23, % 8,743 8,63 7,67 27,186 31,124 38, % 2,847 19,383 16,658 1,735 12,67 16, % 7,35 7,83 5,991 2,621 2,862 3, % 1,669 1,583 1,519 6,48 6,859 7, % 4,524 4,12 3,766 1,623 1,865 2, % ,98 36,196 44, % 19,677 18,66 17, % % 269 1,463 2,818 7, % , , ,462 47,282 3,834 4,14 4,885 16,789 1,993 7,845 5,648 22,758 6,17 1,147 19,28 7,635 1,69 3,857 1,17 21, , % Var , % 242, % 63, % 4, % 5, % 6, % 21, % 1, % 9, % 7, % 28, % 8, % 14, % 25, % 9, % 2, % 4, % 1, % 26, % % % 5, % 216 Annual Report Page 138 of 164

140 Appendices POINTS OF SALE 21 SELLERS CHANNEL 2,54 ADDITIONAL CHANNEL , % 9,84 19, % 12, % 19,84 -.7% 1, % 19, % 7, % 19,892.56% 7, % 19, % 216 Annual Report Page 139 of 164

141 Methodological note and Appendices Casinos TOTAL Euros ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA CEUTA EXTREMADURA GALICIA LA RIOJA MADRID MELILLA MURCIA BASQUE COUNTRY VALENCIA REGION ,982,33 19,729,531 2,638,499 2,89,884 11,245,971 11,233,89 1,466,814 4,634,383 47,125, ,87 2,481,942 3,673,535 1,43,158 44,257,744 1,153,279 5,559,757 6,524,196 3,268, ,126,56 17,53,53 2,71,567 1,994,841 14,758,545 12,78,563 1,86,749 3,62,591 4,351,3 663,713 1,93,468 2,31,498 1,429,961 37,268, ,763 4,622,931 5,48,295 23,121,797 Gross gambling revenue Tables ,86,56 171,278, ,666,573 17,816,658 18,359,723 19,2,335 1,854,379 1,343,724 1,574,927 1,817,122 1,695,673 2,145,474 12,27,844 1,188,227 12,893,638 11,672,437 11,816,113 11,729,96 1,36,65 784,741 1,6,222 3,393,12 2,789,722 2,727,451 1,682,726 36,75,886 35,11,638 39,35,36 712, , ,813 2,21,184 2,227,14 2,684,323 2,628,457 2,437,591 2,649,91 947, ,87 863,25 37,214,441 5,672,365 46,731, , , ,333 3,937,227 3,45,527 3,4,21 5,319,41 5,13,463 4,91,786 23,682,276 23,49,881 23,668, % Var ,22, % 24,56, % 1,75, % 2,718, % 13,716, % 11,284, % 848, % 3,38, % 3,855, % 41,844,83 7.2% 655, % 2,526, % 2,44, % 782, % 52,759, % 529, % 2,853, % 4,89,23-2.7% 24,552,9 3.73% 216 Annual Report Page 14 of 164

142 Appendices TOTAL Euros ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA CEUTA EXTREMADURA GALICIA LA RIOJA MADRID MELILLA MURCIA BASQUE COUNTRY VALENCIA REGION ,51,124 12,649,21 1,741,42 96,486 4,97,756 13,387,563 1,755,269 1,517,585 35,589, ,67 3,871,484 2,198, ,255 9,776, ,926 1,436,841 7,296,79 9,68, ,82,758 12,158,273 1,373, ,848 4,945,4 12,653,436 1,817,44 1,295,396 36,835, ,275 3,45,781 1,614, ,719 9,492, ,383 1,319,18 6,737,114 9,872,18 Gross gambling revenue Machines ,757,42 116,545, ,848,85 11,212,276 11,115,838 12,255,48 1,162,692 1,58,526 1,32, ,863 1,57,728 1,31,413 6,528,562 6,877,31 7,92,748 14,289,999 15,393,369 15,986,422 2,1,355 2,66,829 2,27,322 1,89, , ,552 49,652 41,589,763 41,662,326 48,5,944 74,95 85, ,998 3,13,13 3,16,143 3,362,289 1,524,63 1,581,668 1,515,5 265, ,21 187,396 9,731,89 13,347,491 18,114, ,7 95, ,58 975, , ,57 5,856,3 5,466,983 6,254,436 1,25,67 11,257,495 16,113, % Var ,513, % 12,98, % 965, % 1,236, % 8,444, % 18,59, % 2,172, % 1,125, % 1,134, % 53,723, % 279, % 3,474, % 1,464, % 13, % 2,711, % 53, % 569,1 1.4% 3,474, % 17,514,52 8.7% 216 Annual Report Page 141 of 164

143 Methodological note and Appendices TOTAL Euros ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA CEUTA EXTREMADURA GALICIA LA RIOJA MADRID MELILLA MURCIA BASQUE COUNTRY VALENCIA REGION ,429,919 4,48, ,48 186,773 1,896,876 3,156, , ,266 8,715,173 8, , , ,285 8,723,42 11, ,27 929,23 2,632, ,391,85 3,65,99 34,93 171,328 1,89,813 2,965,44 174, ,12 6,942,117 59,75 252, , ,326 7,689, , , ,529 2,715, ,928,35 3,158, , ,71 1,757,267 2,89, , ,211 5,937,64 33, , ,144 11,978 6,746,964 41, , ,73 2,444,639 Revenue from tips ,77,71 2,914, ,744 92,64 1,846,55 2,959,47 132,5 37,993 5,725,64 35, ,28 46,391 69,725 8,416,924 42, ,67 621,726 2,339, ,997,857 3,242,68 23,859 15,219 1,869,361 2,727, ,82 345, ,831 6,115,94 42,52 266, ,242 72,275 8,22,999 4, , ,22 2,388, % Var ,448, % 3,387, % 254, % 149, % 2,334, % 2,671, % 12, % 444, % 34, % 6,48, % 25, % 186, % 355, % 73, % 8,258, % 28,16-3.2% 231, % 479, % 2,624, % 216 Annual Report Page 142 of 164

144 Appendices TOTAL Euros ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA CEUTA EXTREMADURA GALICIA LA RIOJA MADRID MELILLA MURCIA BASQUE COUNTRY VALENCIA REGION 211 2,193,68 339,89 35,94 33,65 175,66 37,337 19,887 16,45 441, ,242 74, ,25 44, , ,828,34 268,76 31,482 31,3 187,88 31,799 11,235 1, , , , ,422 49, ,658 Revenue from admission fees ,466,615 1,154, , ,265 25,59 5,913 25,461 27,76 15,717 17,235 3,54 31,443 3, ,33 5,355 82,376 7, ,977 24,687 1,872 3, , , , ,694 41, , , ,63, , ,36 86,36 37, ,595 73, ,794 5,25 299, , , % Var ,921, % 212, % % 23,495 1.% 1, % 47, % 75-5.% % 1,39, % % 9, % 3, % 224, % % 5, % 255,98 1.8% 216 Annual Report Page 143 of 164

145 Methodological note and Appendices TOTAL Euros ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA CEUTA EXTREMADURA GALICIA LA RIOJA MADRID MELILLA MURCIA BASQUE COUNTRY VALENCIA REGION 211 1,79,892,321 15,825,594 18,449,848 12,368,53 53,182,85 67,584,311 8,963,557 29,52, ,711,343 2,655,645 13,756,497 16,842,122 8,7,76 282,941,697 5,56,98 3,755,477 25,483, ,111, ,974,41 1,27,988 14,14,786 1,665,76 58,221,573 68,738,562 9,446,122 24,312, ,54,582 2,49,592 11,585,69 14,779,196 7,36,45 252,83,383 5,712,946 26,399,124 2,679,5 124,141,724 DROP. Tables ,16,71 941,9,592 88,528,952 87,54,731 11,6,5 11,116,713 8,812,262 8,449,455 52,326,876 49,466,584 7,231,348 69,865,384 6,974,588 6,166,21 21,29,367 16,483, ,288,93 185,855,538 2,236,7 2,477,88 12,446,21 11,739,345 13,366,62 12,76,984 5,279,62 4,383,7 229,789,123 32,79,53 3,7,998 4,24,828 21,875,8 2,326,33 19,782,527 2,855,75 121,16, ,237, ,733,541 99,4,165 1,91,53 9,946,465 56,776,52 73,44,89 5,71,449 15,843,272 5,924,474 24,61,613 3,361,928 13,438,777 13,769,578 4,474,63 294,917,728 4,757,49 18,159,935 26,14,8 132,384, % Var ,64,26, % 113,274, % 1,625, % 12,668, % 64,468, % 68,18, % 5,678, % 2,67, % 18,247, % 216,642, % 3,144, % 11,14, % 11,946, % 4,879, % 329,6, % 3,535, % 16,129, % 27,374, % 127,25, % 216 Annual Report Page 144 of 164

146 Appendices TOTAL Euros ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA CEUTA EXTREMADURA GALICIA LA RIOJA MADRID MELILLA MURCIA BASQUE COUNTRY VALENCIA REGION ,598,8 63,245,15 5,797,67 4,82,43 2,488,78 66,937,815 8,776,345 7,587, ,948, ,35 19,357,42 1,994,935 1,456,275 48,884,62 614,63 7,184,25 36,48,395 48,43, ,119,95 6,791,365 4,573,945 4,769,24 24,725,2 63,267,18 9,87,2 6,476,98 184,175, ,375 17,28,95 8,71,125 1,648,595 47,464,72 576,915 6,595,54 33,685,57 49,36,54 Amounts Gambled Machines ,845,44 58,27,117 56,61,38 55,579,19 3,871,764 5,23,392 4,839,315 5,288,64 32,642,81 34,385,155 71,449,995 76,966,845 1,6,775 1,334,145 5,445,925 4,658,625 27,948,815 28,311,63 374,75 429,895 15,65,65 15,8,715 7,623,15 7,98,34 1,327,315 1,66,5 48,659,45 66,737, ,35 477,495 4,879,73 3,617,155 29,281,5 27,334,915 51,28,35 56,287, ,34,55 61,277,4 4,398,54 6,552,65 39,63,74 79,932,11 11,36,61 4,762,76 2,453,26 24,29,72 959,99 16,811,445 7,575,25 936,98 9,572, ,54 2,577,535 31,272,18 8,565, % Var ,954, % 64,9, % 3,215, % 6,18, % 42,221, % 9,296, % 1,862, % 5,627, % 5,671, % 268,617, % 1,396, % 17,37, % 7,323, % 654, % 13,558, % 266, % 2,845,5 1.4% 17,373, % 87,572,6 8.7% 216 Annual Report Page 145 of 164

147 Methodological note and Appendices TOTAL ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN Castilla La Mancha CATALONIA CEUTA EXTREMADURA GALICIA LA RIOJA MADRID MELILLA MURCIA BASQUE COUNTRY VALENCIA REGION Number of tables % Var % % 5.% % % % % % % % 7.% 8.% 15.% 5 25.% % 4.% 7.% 19.% % 216 Annual Report Page 146 of 164

148 Appendices TOTAL ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA CEUTA EXTREMADURA GALICIA LA RIOJA MADRID MELILLA MURCIA BASQUE COUNTRY VALENCIA REGION 211 2, , , Number of machines 214 2, , % Var ,225 5.% % % 42 2.% % % 27-1.% % % % % % % % % 5.% % % % 216 Annual Report Page 147 of 164

149 Methodological note and Appendices TOTAL ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA CEUTA EXTREMADURA GALICIA LA RIOJA MADRID MELILLA MURCIA BASQUE COUNTRY VALENCIA REGION 211 4,373,996 46,1 65,63 82, , ,753 45, ,15 1,3,674 22,59 68,198 78,123 55,46 687,632 23, , ,1 759, ,131,44 362,83 63,59 82,78 2, ,439 45,44 125, ,168 22,814 96,787 73,97 45, ,162 25, , ,453 69,512 Number of visitors ,21,539 4,659,52 325, ,623 52,514 54,697 77,384 77,683 19,63 199,94 35, ,231 38,574 38, ,435 12,562 1,294,34 1,359,94 19,369 17,78 19,71 126,36 64,273 61,943 4,783 3,159 62, ,818 23,968 23, ,479 98, , ,66 632,46 677, ,12, ,851 66,88 79, ,948 33,49 84,326 15, ,832 1,519,176 22,555 14,446 67,525 28, ,449 18,76 79,92 164, , % Var ,38, % 428, % 67, % 12, % 229,685.32% 319, % 93, % 153, % 252, % 1,529,299.67% 3, % 136, % 65, % 27, % 977, % 15, % 72, % 183, % 694, % 216 Annual Report Page 148 of 164

150 Appendices TOTAL ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA CEUTA EXTREMADURA GALICIA LA RIOJA MADRID MELILLA MURCIA BASQUE COUNTRY VALENCIA REGION ,215 1, , ,95 1, , ,129 1, , ,98 1, ,8 Scheduled days of activity ,611 16,26 1,46 1, ,95 1,95 2,89 2, ,95 1,95 1,46 1, , ,16 2, ,935 1, ,95 2, ,95 1,24 1, , , % Var , % 1, % % % 1,98.27% 2,928.27% % 1,98.27% 2, % 1,464.27% % % % % 1,464.27% % % % 1,83.27% 216 Annual Report Page 149 of 164

151 Methodological note and Appendices TOTAL ANDALUSIA ARAGON ASTURIAS BALEARIC ISLANDS CANARY ISLANDS CANTABRIA CASTILLA-LEÓN CASTILLA LA MANCHA CATALONIA CEUTA EXTREMADURA GALICIA LA RIOJA MADRID MELILLA MURCIA BASQUE COUNTRY VALENCIA REGION Casinos active in the year % Var % 5 25.% 1.% 1.% 3.% 8.% 1.% 3.% 9 8.% 4.% 1.% 1.% 2.% 1.% 4.% 1.% 1.% 2.% 5.% 216 Annual Report Page 15 of 164

152 Appendices ai Type B Machines 216 Annual Report Page 151 of 164